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Tesla cuts EV prices again as stock continues to slide

Published 2024-04-20, 04:34 a/m
© Reuters.

Tesla (NASDAQ:TSLA) has slashed prices on several of its electric vehicle (EV) models in the United States, with cuts reaching as much as $2,000. This marks another adjustment in its pricing strategy amidst deteriorating market conditions.

The price reduction affects Tesla's Model Y, Model S, and Model X, although prices for the Model 3 and the newly released Cybertruck remain unchanged, the Electrek has reported.

Tesla stock slipped again on Friday and is down more than 40% year-to-date.

This move brings the price of the Model Y, Tesla’s top-selling model, back to its lowest ever, in a bid to boost sales after a quarter marked by disappointing delivery figures. The company's quarterly report showed a significant rise in inventory levels.

The price adjustments come at a tumultuous time for Elon Musk’s company, which recently trimmed its workforce by 10% and witnessed the departure of two high-ranking executives.

Investors were particularly disappointed that Tesla has put plans for a more affordable $25,000 car on hold.

As a result, analysts made adjustments to their models on Tesla with Deutsche Bank downgrading the rating to Hold.

“We view Tesla’s shift as thesis-changing and worry the stock will need to undergo a potentially painful transition in ownership base, with investors previously focused on Tesla’s EV volume and cost advantage potentially throwing in the towel, and eventually replaced by AI/tech investors with considerably longer time horizons,” analysts at Deutsche Bank said.

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