May 22, 2024

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Tesla is reducing the prices of its Model Y, S and X cars in the United States after a difficult week

Tesla is reducing the prices of its Model Y, S and X cars in the United States after a difficult week

Tesla cut $2,000 from the prices of three of its five models in the United States late Friday, in another sign of the challenges facing the electric car maker led by billionaire Elon Musk.

The company cut prices for the Model Y, a small SUV that is Tesla's most popular model and the best-selling electric car in the United States, as well as the Model X and S, its older and more expensive models. Prices for the Model 3 Sedan and Cybertruck remain the same.

The discounts reduced the initial price of Y model To $ 42,990 and to $ 72,990 for the S model and $ 77,990 for the X model.

This move came the day after Tesla shares fell Less than $150 per share, eliminating all gains achieved during the past year. the Austin, TexasThe company's stock price is down about 40% so far this year Sales decline And increase competition. Lower sticker prices are a way to try to attract more car buyers.

Musk posted early Saturday on X, the social media platform known as Twitter before he acquired and renamed it, that the cost of an entry-level Tesla was as low as $29,490 one time. Federal tax credit Gas savings were taken into account.

Industry analysts had been waiting for Tesla to introduce a small electric car costing about $25,000, the Model 2. Media reported this month that Musk intended to cancel the project to create more uncertainty about the company's direction, although Musk described it as untrue.

The price cuts ended a long work week at Tesla, which announced on Monday that it would cut 10% of its employees globally, or about 14,000 jobs. The company also said it is recalling nearly 4,000 2024 Cybertrucks after discovering that the accelerator pedal could become stuck, which could cause the vehicle to accelerate unintentionally and increase the risk of a crash.

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On Saturday, Musk confirmed that he had postponed a trip scheduled for the weekend to India for the meeting Prime Minister Narendra ModiCiting Tesla's “very heavy liabilities.” He said on the X program that he was looking forward to rescheduling the visit for later this year.

Tesla is scheduled to announce its first-quarter earnings on Tuesday.

The company reported earlier this month that its global sales fell sharply from January to March as competition increased around the world, electric vehicle sales growth slowed, and previous price cuts failed to attract more buyers.

This was the first quarterly decline in Tesla sales year over year in nearly four years.