Wednesday, April 24, 2024

Tesla cuts China, US prices after slow sales, rising inventories

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Elon Musk-led Tesla has slashed prices in China and the United States following a disappointing first quarter sales that led to a swelling inventory. 

According to a Bloomberg report, the carmaker has cut prices across the range with the Model 3 price falling to 231,900 yuan ($32,000) from 245,900 yuan previously. On the other hand, Model Y price was discounted to 249,900 yuan — or about $34,500 — from 263,900 yuan.

In the United States, the cheapest version of Tesla’s Model Y is priced at $42,990. The company has also offered discount on 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.

In the United States, the cheapest version of Tesla’s Model Y is priced at $42,990(Unsplash/Michael Förtsch)

Recently, Elon Musk in a memo to 1.40 lakh company employees announced that he was reducing workforce by more than 10 per cent across the world. 

ALSO READ: Elon Musk apologizes to Tesla employees: Sent ‘incorrectly low’ severance

Last week, Tesla had said it will ask the shareholders to vote again on a $56 billion compensation package for the CEO that was voided by a US court in January this year, the Bloomberg report added. 

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The company also recalled almost 3,900 Cybertruck pickups to fix or replace accelerator pedals that can dislodge and cause the vehicle to unintentionally accelerate, thereby increasing the risk of a crash, the report added. 

On Saturday, Musk announced that he has postponed a planned trip to India this week where he was expected to meet Prime Minister Narendra Modi. 

“Unfortunately, very heavy Tesla obligations require that the visit to India be delayed, but I do very much look forward to visiting later this year,” Musk wrote on social platform X.

Tesla will report first-quarter earnings on April 23. Its stock is down more than 40% this year on concern about slumping sales, intensifying competition in 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.

(With Bloomberg inputs)

 



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