Tesla Inc. cut prices for its best-selling Model Y, as well as Models S and X, by $2,000 after disappointing first-quarter sales contributed to rising inventory.
The cheapest version of the Model Y now costs $42,990 in the US, bringing the sport utility vehicle’s starting price back to its lowest yet. Tesla also discounted the other two most expensive versions of the Model Y by $2,000 and dropped the price of the Model X to its lowest level yet.
The cuts cap a hectic week for the Austin-based automaker, even by CEO Elon Musk’s standards. Earlier Sunday, Musk announced in a memo to the company’s more than 140,000 employees that he was reducing headcount by more than 10% globally. Two senior executives also left.
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 was overturned by a Delaware court in January.
And on Friday, the company recalled nearly 3,900 Cybertruck pickup trucks to repair or replace accelerator pedals that can detach and cause the vehicle to accelerate unintentionally, increasing the risk of a crash.
Tesla reports its first quarter earnings on April 23. Its shares have fallen more than 40% this year due to concerns about falling sales, intensifying competition in China and Musk’s risky plan to go “to the wall” on autonomy.
The automaker reported its first year-over-year decline in sales since the early days of the pandemic, delivering 386,810 vehicles in the first quarter, well below analyst estimates.