(Austin, Texas) – Tesla Inc., led by Elon Musk, has made significant price reductions on its vehicle models in China, Europe, and the United States over the weekend. These price cuts come as a response to declining sales and an excess of inventory for the electric car company.
On Saturday, Tesla also announced a 33% price reduction on its Full Self-Driving (FSD) software, dropping the price to $8,000 in the United States from its previous $12,000 price tag. This move follows the release of new versions of the FSD software and Musk’s promise to unveil a dedicated robotaxi on August 8th.
Recently, Tesla has been faced with disappointing sales figures, prompting the company to slash prices across its range in China, the US, and Europe. Notably, the Model 3 in China saw a price reduction from 245,900 yuan to 231,900 yuan, while the Model Y dropped from 263,900 yuan to 249,900 yuan.
In the US, Tesla reduced the starting price of the Model Y to $42,990, marking the lowest price point yet for the SUV. Additionally, the company offered $2,000 discounts on the two more expensive versions of the Model Y and reduced the price of the Model X to its lowest level.
These price adjustments come amidst a turbulent time for Tesla, with Musk announcing a global headcount reduction of more than 10% and the departure of two top executives. The company also faces challenges with a shareholder vote on Musk’s $56 billion compensation package and a recall of nearly 3,900 Cybertruck pickups over accelerator pedal issues.
Despite these obstacles, Tesla is set to report its first-quarter earnings on April 23. With concerns over declining sales, rising competition in China, and Musk’s ambitious plans for autonomy, the electric car maker’s stock has plummeted more than 40% this year.
In China, Tesla’s market share has also shrunk, indicating the challenges the company is facing in one of its key markets. As the competition intensifies and sales continue to decline, Tesla is navigating a complex landscape in the electric vehicle industry.
With Musk’s future plans and Tesla’s strategic adjustments, the company is working to overcome its current setbacks and maintain its position as a leading player in the electric car market. As the industry evolves, Tesla’s ability to innovate and adapt will be critical in determining its success in the coming months.