Tesla announces price reductions across key models in U.S. following lower-than-expected deliveries

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Tesla Model Y

20th April 2024 – (Texas) Tesla Inc., the world’s most valuable automaker, has implemented a $2,000 price cut on several of its models, including the Model Y, Model X, and Model S, as revealed on its website this Friday. The price adjustments come shortly after the company reported first-quarter vehicle deliveries that fell short of market expectations.

The price of the Model Y’s base variant has been reduced to $42,990, with its long-range and performance versions now priced at $47,990 and $51,490, respectively. The Model S base model now stands at $72,990, with the plaid variant adjusted to $87,990. Similarly, the Model X base variant has been reset to $77,990, with its plaid version now at $92,900.

In a related development, Tesla North America announced on X, formerly known as Twitter, that it would be discontinuing its referral program benefits across all markets effective 30th April. This program, akin to those used by traditional automakers, offered incentives to buyers who were referred by existing customers.

Further complicating Tesla’s operational landscape, a planned trip by CEO Elon Musk to India has been postponed. Musk was expected to meet with Prime Minister Narendra Modi to discuss Tesla’s entry into the South Asian market, according to a Reuters report.

Moreover, internal communications disclosed by Reuters on Monday indicated that the electric vehicle (EV) maker is set to lay off more than 10% of its global workforce. This news comes on the heels of another report earlier this month stating that Tesla had scrapped plans for a much-anticipated $25,000 vehicle, which had been projected to significantly boost the company’s mass-market growth.