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In response to a shortfall in first-quarter deliveries that missed market expectations, Tesla has announced a USD 2,000 price reduction for its Model Y, Model X, and Model S vehicles in the United States, as reported by Reuters. This move follows the EV manufacturer’s report earlier this month, revealing a decline in global vehicle deliveries for the first time in nearly four years, despite previous price adjustments aimed at stimulating demand.
According to Reuters, the revised pricing now positions the base variant of the Model Y at USD 42,990, with the long-range and performance variants priced at USD 47,990 and USD 51,490, respectively. Similarly, the basic version of the Model S is now listed at USD 72,990, while its plaid variant is priced at USD 87,990. Meanwhile, the Model X base variant is priced at USD 77,990, with its plaid variant commanding a price tag of USD 92,900.
Additionally, Tesla North America announced via X post that it would discontinue its referral program benefits across all markets after April 30. This program, which traditionally provided extra incentives to buyers through referrals from existing customers, aimed to bolster sales, mirroring strategies employed by traditional automakers.
Meanwhile, Elon Musk, CEO of Tesla, has postponed his planned trip to India, where he was expected to meet Prime Minister Narendra Modi and unveil plans for the company’s entry into the vast Indian market. This delay comes amidst recent reports, citing an internal memo, indicating that Tesla is undergoing layoffs affecting more than 10% of its global workforce. This move suggests internal restructuring efforts within the company as it navigates through challenges in the market.
Tesla’s decision to adjust prices and discontinue referral program benefits reflects its ongoing efforts to adapt to market dynamics and maintain competitiveness in the rapidly evolving electric vehicle industry. Despite setbacks and internal adjustments, the company continues to forge ahead with its ambitious expansion plans and technological innovations under the leadership of Elon Musk.
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