Current:Home > MarketsTesla cuts US prices for 3 of its electric vehicle models after a difficult week -Aspire Financial Strategies
Tesla cuts US prices for 3 of its electric vehicle models after a difficult week
View
Date:2025-04-15 14:51:21
Tesla knocked $2,000 off the prices of three of its five models in the United States late Friday, another sign of the challenges facing the electric vehicle maker led by billionaire Elon Musk.
The company cut the prices of the Model Y, a small SUV which is Tesla’s most popular model and the top-selling electric vehicle in the U.S., and also of the Models X and S, its older and more expensive models. Prices for the Model 3 sedan and the Cybertruck stayed the same.
The cuts reduced the starting price for a Model Y to $42,990 and to $72,990 for a Model S and $77,990 for a Model X.
The move came the day after Tesla’s stock tumbled below $150 per share, eliminating all gains made over the past year. The Austin, Texas, company’s stock price has dropped about 40% so far this year amid falling sales and increased competition. Discounted sticker prices are a way to try to entice 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 once a federal tax credit and gas savings were factored in.
Industry analysts have been waiting for Tesla to introduce 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 over the company’s direction, although Musk called them untrue.
The price cuts ended a long workweek at Tesla, which announced Monday that it was cutting 10% of its staff globally, about 14,000 jobs. The company also said it was recalling nearly 4,000 of its 2024 Cybertrucks after discovering the accelerator pedal can get stuck, potentially causing the vehicle to accelerate unintentionally and increase the risk of a crash.
On Saturday, Musk confirmed he had postponed a planned weekend trip to India to meet with Prime Minister Narendra Modi, citing “very heavy Tesla obligations.” He said on X that he looked 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 worldwide sales fell sharply from January through March as competition increased worldwide, electric vehicle sales growth slowed, and earlier price cuts failed to lure more buyers.
It was Tesla’s first year-over-year quarterly sales decline in nearly four years.
veryGood! (7)
Related
- Elon Musk's skyrocketing net worth: He's the first person with over $400 billion
- 'Imagining Freedom' will give $125 million to art projects focused on incarceration
- Jimmy Kimmel expects no slaps hosting the Oscars; just snarky (not mean) jokes
- Rolling the dice on race in Dungeons & Dragons
- DoorDash steps up driver ID checks after traffic safety complaints
- Harvey Weinstein will likely spend the rest of his life in prison after LA sentence
- Take your date to the grocery store
- Getting therapeutic with 'Shrinking'
- Friday the 13th luck? 13 past Mega Millions jackpot wins in December. See top 10 lottery prizes
- Harvey Weinstein will likely spend the rest of his life in prison after LA sentence
Ranking
- Juan Soto to be introduced by Mets at Citi Field after striking record $765 million, 15
- Berklee Indian Ensemble's expansive, star-studded debut album is a Grammy contender
- Viola Davis achieves EGOT status with Grammy win
- Fear, Florida, and The 1619 Project
- Macy's says employee who allegedly hid $150 million in expenses had no major 'impact'
- Folk veteran Iris DeMent shows us the 'World' she's been workin' on
- How Hollywood squeezed out women directors; plus, what's with the rich jerks on TV?
- Rebecca Black leaves the meme in the rear view
Recommendation
Opinion: Gianni Infantino, FIFA sell souls and 2034 World Cup for Saudi Arabia's billions
Black History Month is over, but these movies are forever
2023 Oscars Preview: Who will win and who should win
'Whoever holds power, it's going to corrupt them,' says 'Tár' director Todd Field
McKinsey to pay $650 million after advising opioid maker on how to 'turbocharge' sales
Matt Butler has played concerts in more than 50 prisons and jails
Changes to new editions of Roald Dahl books have readers up in arms
'The Forty-Year-Old Version' is about getting older and finding yourself