Home Tech Tesla cuts prices around the world as sales fall in chaotic week

Tesla cuts prices around the world as sales fall in chaotic week

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Tesla cuts prices around the world as sales fall in chaotic week

Tesla cut prices on three of its five models in the US on Friday night and then cut prices around the world, including China and Germany, as the company faces falling sales, a recall of Cybertruck and an increasingly intense war for electric vehicles. electric vehicles).

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On Friday, the company, led by billionaire Elon Musk, cut prices on the Model Y, a small SUV that is Tesla’s most popular model and the best-selling electric vehicle in the US, and also on the Models S. their older and more expensive models. Prices for the Model 3 sedan and Cybertruck remained the same.

The cuts reduced the starting price of a Model Y to $42,990, and to $72,990 for a Model S and $77,990 for a Model X.

Then, on Saturday, Tesla reduced the U.S. price of its “Full Self-Driving” driver-assist software from $12,000 to $8,000.

The cuts continued on Sunday, when Tesla reduced the starting price of the refreshed Model 3 in China by 14,000 yuan ($1,930) to 231,900 yuan ($32,000), its official website showed.

In Germany, the automaker reduced the price of its rear-drive Model 3 to 40,990 euros ($43,670.75) from 42,990 euros, the price it had been at since February.

There were also price cuts in many other countries in Europe, the Middle East and Africa, a Tesla spokesperson said.

The series of price cuts comes after the company reported this month that its global vehicle deliveries in the first quarter had fallen for the first time in almost four years.

Tesla shares fell below $150 this week, erasing all the gains the company made last year. The automaker said Monday that it was cut 10% of its staff globally, about 14,000 jobs. Musk has also faced criticism from investors who say he is too stretched after his purchase of social media platform Twitter, which he renamed X, in 2022. Meanwhile, Tesla has asked its shareholders to vote in favor of the pay package of Musk’s $56 billion. which was rejected this year by a judge who called it an “unfathomable sum.”

The price cuts ended a chaotic week for Tesla that included a recall of all Cybertrucks on Friday.

Federal regulators contacted the company after learning of a malfunction in the vehicle’s accelerator pedal. Cybertruck owners reported that their vehicles were at risk of getting stuck when driving at full speed due to a loose pedal. The video showed the pedal falling off and the piece underneath becoming lodged inside the car, which would force the vehicle to accelerate at maximum speed. A driver was able to save himself from the accident by pressing the brake pedal.

“This is another black eye for Tesla, which has added to the chaos that is happening for Musk,” said Dan Ives, senior equity analyst at Wedbush Values. “Cybertruck is pedestal time and an out-of-doors recall is a bad look.”

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Industry analysts have been expecting Tesla to unveil a small electric vehicle that would cost around $25,000, the Model 2. Media reports this month that Musk planned to scrap the project created more uncertainty about the company’s direction. , although Musk called them fake.

On Saturday, Musk confirmed that he had postponed a planned weekend trip to India to meet with that country’s Prime Minister Narendra Modi, citing “very heavy obligations with Tesla.” He said on X that he hoped to reschedule the visit for later this year.

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

The company reported this month that its global sales had fallen 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.

It was the first year-over-year drop in Tesla’s quarterly sales in nearly four years.

Kari Paul contributed inform

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