In a desperate attempt to stimulate sales and prop up a stock price dropping like a rock, Elon Musk’s Tesla has reduced the prices of three of its five models in the United States.
CNBC reports that late Friday, Tesla announced significant price cuts for its Model Y, S, and X vehicles in the U.S. market. The decision comes on the heels of a challenging week for the electric vehicle manufacturer, which included massive layoffs and a recall of nearly 4,000 Cybertrucks due to accelerator pedals that can become stuck to the floor of the bizarre electric truck.
Elon Musk, chief executive officer of Tesla Inc., speaks via video link during the Qatar Economic Forum in Doha, Qatar, on Tuesday, June 21, 2022. Photographer: Christopher Pike/Bloomberg
The Model Y, Tesla’s most popular model and the top-selling electric vehicle in the U.S., saw its starting price reduced to $42,990. The company also lowered the prices of its older and more expensive models, with the Model S now starting at $72,990 and the Model X at $77,990. The prices for the Model 3 sedan and the Cybertruck remained unchanged.
This move follows a tumultuous period for Tesla, as the company’s stock price has dropped approximately 40 percent since the beginning of the year. The decline is attributed to falling sales and increased competition in the electric vehicle market. By offering discounted sticker prices, Tesla aims to attract more car buyers and boost sales.
Tesla CEO Elon Musk took to social media platform X (formerly known as Twitter) to highlight what he claims is the affordability of entry-level Teslas. He stated that when considering federal tax credits and gas savings, the cost of an entry-level Tesla could be as low as $29,490.
Industry analysts have been anticipating the introduction of a smaller, more affordable Tesla model, dubbed the Model 2, with a projected price of around $25,000. Recent media reports suggesting that Musk planned to scrap the project have created uncertainty about the company’s future direction, although Musk has denied these claims.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.