In a move to stimulate demand and rebound from a disappointing first-quarter performance, Tesla announced price cuts for its Model Y, Model X, and Model S vehicles by $2,000 each. The adjustment in prices comes shortly after the electric automaker’s global vehicle deliveries in the first quarter fell for the first time in nearly four years, missing market expectations.
According to Tesla’s website, the base variant of the Model Y is now priced at $42,990, while the long-range and performance variants are available at $47,990 and $51,490, respectively. The Model S basic version sees a price drop to $72,990, with the plaid variant now priced at $87,990. Meanwhile, the Model X base variant is priced at $77,990, and its plaid variant stands at $92,900.
In addition to the price adjustments, Tesla North America announced the discontinuation of its referral program benefits in all markets after April 30. This program, which offers extra incentives to buyers through referrals from existing customers, has been a longstanding strategy used by Tesla and traditional automakers alike to boost sales.
Amid these developments, Elon Musk, Tesla’s CEO, postponed his planned trip to India where he was set to meet Prime Minister Narendra Modi and announce the company’s entry into the South Asian market, as reported by Reuters. Earlier this month, Reuters also revealed that Tesla was laying off more than 10% of its global workforce, adding to the company’s challenges.
Moreover, Tesla disappointed investors by canceling a long-promised affordable car priced at $25,000, which was expected to drive mass-market growth. These setbacks come at a time when Tesla’s global vehicle deliveries are declining despite the price cuts implemented to stimulate demand.
With Tesla’s first-quarter earnings report scheduled for Tuesday, investors and analysts are keenly awaiting insights into the company’s performance, strategy adjustments, and outlook for the future. The electric automaker’s ability to navigate these challenges and regain momentum will be closely watched by the automotive industry and financial markets alike.