In a move to counter recent market disappointments, Tesla announced significant price reductions for its Model Y, Model X, and Model S vehicles in the U.S. The price cuts, amounting to $2,000 each, come on the heels of lower-than-expected first-quarter deliveries for the electric vehicle (EV) giant, despite being the world’s most valuable automaker.
The base variant of the Model Y will now cost $42,990, with the long-range and performance variants priced at $47,990 and $51,490, respectively. Similarly, the basic version of the Model S is now priced at $72,990, while the plaid variant costs $87,990. For the Model X, the base variant will be available at $77,990, with the plaid variant priced at $92,900.
Our current referral program benefits will end after April 30 in all markets
— Tesla North America (@tesla_na) April 20, 2024
Additionally, Tesla North America announced the discontinuation of its referral program benefits in all markets after April 30. The referral program, which provided extra incentives to buyers through referrals from existing customers, has been a long-standing strategy used by traditional automakers to boost sales.
— Elon Musk (@elonmusk) April 20, 2024
Meanwhile, Elon Musk, CEO of Tesla, has postponed his planned trip to India, where he was set to meet Prime Minister Narendra Modi and unveil plans to enter the South Asian market. The decision follows a recent report by Reuters, citing an internal memo, that Tesla is laying off over 10% of its global workforce.
This setback comes after the cancellation of Tesla’s long-promised inexpensive car, expected to be priced at $25,000, which investors had anticipated would drive mass-market growth. The EV maker reported a decline in global vehicle deliveries in the first quarter, marking the first drop in nearly four years, despite previous price cuts aimed at stimulating demand.
