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Tesla cuts prices after massive Cybertruck recall

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Tesla has recently announced substantial price cuts across several of its models in the US, including the Model Y, Model S, and Model X, all of which are now $2,000 cheaper.

This move comes amid a string of challenges for the company, such as staff reductions, executive departures, legal disputes over CEO Elon Musk’s compensation, and paused projects, as reported by Electrek.com.

These price adjustments do not affect the Model 3 or the recently recalled Cybertruck. However, they reflect a trend observed last quarter when Tesla briefly reduced prices for the Model Y in response to disappointing delivery figures and increasing inventory levels.

This current reduction brings the Model Y back to its previous lowest price point, matching the temporary discount offered in February.

Additionally, Tesla appears to be discontinuing its referral program effective April 30, although Musk has mentioned that the program will return in the future.

The starting price for the Model Y RWD is now $42,990, down from $44,990. Similarly, the Long Range and Performance models have received $2,000 reductions, making them $47,990 and $51,490, respectively.

For the higher-end Model S and Model X, the $2,000 discount brings the Model S starting price to $72,990 and the Model X to $77,990. This marks the lowest price point for the Model X, which also qualifies for a federal tax credit, potentially lowering its initial cost even further.

Notably, Tesla has not indicated that these price cuts are temporary, suggesting a potential shift in pricing strategy. These adjustments coincide with Tesla’s promotion of a new lease offer for the Model 3 at a reduced rate of $299 per month, down from $329.

Overall, these price changes appear to be a response to internal and external pressures faced by Tesla, aimed at stimulating sales and addressing inventory challenges amidst ongoing difficulties.

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