Tesla has reduced prices on three of its five models in the U.S. and globally, including in China and Germany, due to declining sales, a Cybertruck recall, and increasing competition in the electric vehicle market. The price cuts have affected the Model Y, Model X, and Model S, while the Model 3 and Cybertruck prices remain unchanged.
The Model Y now starts at $42,990, the Model S at $72,990, and the Model X at $77,990 following the price reductions. Tesla also slashed the price of its “fully self-driving” software in the U.S. from $12,000 to $8,000.
In China, the starting price of the updated Model 3 was reduced by 14,000 yuan ($1,930) to 231,900 yuan ($32,000). Meanwhile, in Germany, the price of the rear-wheel-drive Model 3 dropped to 40,990 euros ($43,670.75) from 42,990 euros.
The price cuts extend to many other countries in Europe, the Middle East, and Africa, as Tesla tries to boost sales following a decline in global car deliveries in the first quarter of the year.
The series of price reductions come amidst challenges for the company, including a Cybertruck recall due to issues with the gas pedal. This incident has added to Elon Musk’s recent troubles, with Tesla stock dropping and criticism from investors mounting.
Analysts are awaiting the release of the Model 2, a smaller electric car expected to cost around $25,000. Reports of Musk canceling the project have created uncertainty, but he has denied these claims.
Tesla is set to announce its first quarter results soon, with expectations of a significant drop in sales compared to the previous year, marking the first decline in quarterly sales in about four years for the company.
Contributed by Kari Paul report
Source: www.theguardian.com
