- Tesla cut car prices in the United States, China and Europe after sales fell.
- The company also reduced the price of its software in the United States by a third.
- The company’s challenges include disappointing delivery numbers, layoffs and Cybertruck recalls.
Tesla is trying to win back customers with cheaper cars and software.
The electric vehicle maker cut prices in key markets including the United States, China and Europe over the weekend as it faces falling sales and competition increased.
The company also slashed the price of its driver assistance software, Full Self Driving, by a third to $8,000 in the United States.
The changes come just before the electric vehicle maker reports its first-quarter results on Tuesday. Profit margins have fallen dramatically when Tesla has lowered prices in the past.
Tesla has lowered prices on most of its U.S. cars, reducing the costs of Models Y, X and S by $2,000, Reuters reported.
In the United States, the cheapest Model Y and the model — both SUVs – are offered at their lowest prices. The best-selling Model Y now starts at $42,990, according to Tesla’s website.
The company hasn’t changed the price of the new Cybertruck or the Model 3 sedan.
“Tesla prices must change frequently in order to match production with demand,” CEO Elon Musk said written the on Sunday.
Tesla reported disappointing first-quarter deliveries earlier this month and suffered a messy 10% global layoff last week. The company also saw the departure of two key executives, one who oversaw electrical engineering and another focused on business development. Tesla recalled nearly 4,000 Cybertrucks on Friday due to faulty throttles.
The recent challenges have caused headaches for Musk, who postponed a planned trip to India. meet Prime Minister Narendra Modi.
He also faces a major vote in June on his salary. Elon Musk’s $56 billion pay package was struck down by a Delaware judge in January and shareholders will be asked to vote on compensation again at the annual meeting, the company said in a statement.
Tesla’s stock is down more than 40% year to date. Investors are concerned about slow sales amid high interest rates and increased competition from electric vehicle makers in China.
Even Musk’s recent announcement of launching a robo-taxi in August failed to calm investors last week.
businessinsider
