Tesla Slashes Prices and Ends Referral Program

Tesla, the world’s most valuable automaker, responds to market dynamics by reducing the prices of its Model Y, Model X, and Model S vehicles in the U.S. The move comes after the company’s first-quarter deliveries fell short of market expectations.

Price Reductions Across Model Lineup:

Tesla announces a $2,000 price cut for its Model Y, Model X, and Model S vehicles, aiming to stimulate demand in the competitive electric vehicle market.

The base variant of the Model Y now starts at $42,990, with the long-range and performance variants priced at $47,990 and $51,490, respectively.

Similarly, the Model S’s base version is priced at $72,990, and its plaid variant at $87,990, while the Model X’s base variant is now available for $77,990, with the plaid variant priced at $92,900.

Tesla North America announces discontinuing its referral program benefits in all markets after April 30. The referral program, which provided extra incentives through customer referrals, will be phased out as part of Tesla’s strategic adjustments.

Market Expansion Plans and Workforce Reductions:

CEO Elon Musk postponed his planned trip to India, where he was expected to meet Prime Minister Narendra Modi and announce Tesla’s entry into the South Asian market.

The company also faces internal restructuring, with reports indicating more than 10% of its global workforce layoffs. This move follows the cancellation of a long-promised affordable car, anticipated to cost $25,000, aimed at driving mass-market growth.

First-Quarter Performance and Earnings Outlook:

Despite previous price cuts, Tesla’s first-quarter vehicle deliveries declined for the first time in nearly four years. The company faces challenges in stimulating demand amid increasing competition in the electric vehicle sector.

Investors await Tesla’s first-quarter earnings report, scheduled for Tuesday, to assess the company’s financial performance and strategic outlook in the evolving automotive landscape.