Tesla’s making a bold move to regain customers by cutting car prices across the U.S., China, and Europe after a slump in sales. They’ve also dropped the price of their fancy driver-assistance software, Full Self Driving, by a cool one-third in the U.S. — now just $8,000.
This price chop spree happened right before Tesla is due to spill the beans on their first-quarter earnings this Tuesday. Historically, Tesla’s profit margins have taken a hit every time they’ve cut prices. But it seems like desperate times call for desperate measures.
The reductions included a $2,000 price cut on their popular models like the Model Y, X, and S in the U.S., as reported by Reuters. Now, the hottest Tesla, the Model Y, starts at $42,990, which is pretty sweet for a high-tech ride.
No price changes this time for the shiny new Cybertruck or the Model 3 sedan though. Elon Musk, Tesla’s ever-buzzworthy CEO, said on X (formerly Twitter) that Tesla’s got to keep adjusting prices to meet the demand and production levels.
But it’s not just prices Tesla is juggling. They’re also dealing with some other not-so-fun stuff, like disappointing delivery numbers from the first quarter, a recent 10% global layoff, and the exit of two major executives. Oh, and let’s not forget the recall of nearly 4,000 Cybertrucks due to some accelerator issues.
Musk himself seems to have his hands full, having to postpone a trip to India and facing a shareholder re-vote in June on his massive $56 billion pay package after a judge called it quits on the original agreement.
To top off the drama, Tesla’s stock has plummeted over 40% this year, with investors sweating over slow sales and stiff competition, especially from EV makers in China.
Even Musk’s flashy promise of a robotaxi rolling out in August hasn’t managed to ease the investor jitters. It’s clear Tesla’s in for a rollercoaster ride as they try to navigate through these choppy waters.
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