Tesla cuts US prices of Models Y, X, S by $2,000. - Reuters

Tesla cuts US prices of Models Y, X, S by $2,000. - ReutersTesla, the leading electric vehicle (EV) manufacturer, has recently made a surprise move by lowering the prices of its Models Y, X, and S in the US by a significant $2,000 each [1]. This price reduction does not apply to the Model 3 or the newly launched Cybertruck. The latest adjustment comes amidst a tumultuous week for the company, which has seen layoffs of 10% of its workforce, the departure of two key executives, and the filing to reinstate CEO Elon Musk's controversial $55 billion pay package [1].The reduced prices for the Model Y, Model X, and Model S are now equivalent to their prices during Tesla's temporary discount in February [1]. This price drop follows Tesla's earlier decision to put a "temporary" discount on the Model Y, its most popular vehicle, lowering prices by $1,000 for a brief period last quarter [1]. After the discount lapsed, prices increased again by $1,000, only to be reduced once more less than three weeks later [1].The base prices for the Model Y, Model X, and Model S have now been adjusted accordingly. The Model Y Rear-Wheel Drive (RWD) now starts at $42,990, while the Model Y Long Range and Performance trims are now priced at $47,990 and $51,490, respectively [1]. Similarly, the Model S Long Range and Plaid models now start at $72,990 and $87,990, respectively, and the Model X Long Range and Plaid models are now priced at $77,990 and $92,990 [1].Tesla's decision to lower prices without referring to it as a "temporary" discount might signal a shift in the company's pricing strategy [1]. This latest price reduction comes at a time when Tesla is facing challenges, such as rising inventory levels and disappointing quarterly delivery results [1]. Lowering prices may be an attempt to boost demand and clear out inventory, while also providing more affordable options for consumers.With these recent price adjustments, the Model Y is now tied for the cheapest price for the Tesla Model Y in the US yet, at $42,990 [1]. This post-incentive price, combined with federal EV incentives, makes the Model Y a more accessible and affordable option for consumers.References:[1] Electrek. (2024, April 19). Tesla cuts prices by $2,000 in US: Model Y, X, S now cheaper. Retrieved from https://electrek.co/2024/04/19/tesla-cuts-prices-by-2000-in-us-model-y-back-to-its-lowest-price-ever/