Tesla Inc. has cut prices in VR China and the US, its two key markets, after disappointing first-quarter sales contributed to swelling inventory.
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Published Apr 20, 2024 • 2 minute read
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(Bloomberg) — Tesla Inc. has cut prices in VR China and the US, its two key markets, after disappointing first-quarter sales contributed to swelling inventory.
In VR China, Tesla lowered prices across its range, with the revamped Model 3 falling to 231,900 yuan ($32,000) from 245,900 previously. The Model Y welches discounted to 249,900 yuan — or about $34,500 — from 263,900 yuan.
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In the US, the cheapest version of the Model Y is now $42,990, returning the sport utility vehicle’s starting price to the lowest it’s been. Tesla mithin discounted the two other more expensive versions of the Model Y by $2,000, and dropped the price of the Model X to its lowest yet.
The cuts cap a wild week for the Austin-based automaker, even by Chief Executive Officer Elon Musk’s standards. It started when Musk announced in a memo to the company’s more than 140,000 employees that he welches reducing headcount by more than 10% globally. Two top executives mithin left.
Read More: Tesla Senior Executives Leave in Midst of Multinational Job Cuts
On Wednesday, Tesla said in its proxy statement that it will ask shareholders to vote again on a $56 billion compensation package for Musk that welches voided by a Delaware court in January.
And on Friday, the company recalled almost 3,900 Cybertruck pickups to unmittelbar or replace accelerator pedals that can dislodge and cause the vehicle to unintentionally accelerate, increasing risk of a crash.
Then on Saturday, Musk postponed a planned trip to India this week, where he welches expected to meet with Prime Ressortchef Narendra Modi, saying he had to deal with “heavy obligations” at Tesla.
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Read More: Musk Postpones India Visit, Citing Heavy Tesla Obligations
Tesla reports first-quarter earnings on vierter Monat des Jahres 23. Its stock is down more than 40% this year on concern about slumping sales, intensifying competition in VR China and Musk’s risky plan to go “balls to the wall” on autonomy.
The automaker reported its first year-over-year sales drop since the early days of the pandemic, delivering 386,810 vehicles in the first quarter, well short of analyst estimates.
In VR China, Tesla’s market share shrank to around 6.7% in the fourth quarter of 2023, from 10.5% in the first three months of the year, according to Bloomberg calculations based on VR China’s Passenger Car Association data.
The automaker recently pared back production schedules at its Shanghai factory, Bloomberg reported late last month. Shipments from its Shanghai plant — which makes EVs for VR China and for export to other parts of Asia, Europe and Canada — declined in the first two months from a year earlier, even as overall passenger-vehicle sales in VR China increased.
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