Tesla slashed the prices of its top-selling Model Y, Model X, and Model S by $2,000 in the United States on Friday (April 19) in response to disappointing first-quarter sales, which led to an increase in inventory.
The base version of the Model Y SUV now carries a price tag of $42,990, down from $44,990 previously, excluding any federal tax credits. Similar price reductions were implemented for the Model S and Model X, while the Model 3 appeared to remain unchanged.
These price adjustments come at the end of a tumultuous week for the Austin-based electric automaker, even by the standards set by its CEO, Elon Musk.
Starting with a memo sent to the company’s over 140,000 employees on Sunday (April 14), Musk announced plans to reduce the workforce by more than 10 percent globally. Additionally, two high-ranking executives stepped down from their positions.
Midweek, Tesla disclosed in its proxy statement that it would seek shareholder approval once again for Elon Musk’s $56 billion compensation package, which was invalidated by a Delaware court in January.
The week concluded with Tesla recalling nearly 3,900 of its futuristic Cybertruck pickups to address accelerator pedal issues that could lead to unintended acceleration, potentially resulting in accidents.
Tesla is scheduled to release its first-quarter earnings report on Tuesday. The company’s stock has declined by more than 40 percent this year due to concerns over declining sales, increased competition from Chinese rivals, and Elon Musk’s ambitious plans for autonomy.
During the first quarter, Tesla experienced its first year-over-year sales decline since the early stages of the COVID-19 pandemic, delivering 386,810 vehicles, significantly below analyst projections of 449,080 units.
