Tesla slashes prices on Models Y, X, S in US market by $2,000

Tesla price cut: Tesla Motors has announced a major reduction in the prices of its Model Y, Model X, and Model S vehicles in the United States, slashing $2,000 off each model. This price adjustment comes amidst market anticipation following the recent downturn in the global vehicle deliveries of the world's most valuable automaker.

According to information obtained from Tesla's official website, the electric vehicle (EV) giant has revised the prices of its Model Y base variant to $42,990, with the long-range and performance variants now available at $47,990 and $51,490, respectively.

Similarly, the basic version of the Model S has been adjusted to $72,990, while its plaid variant now comes with a price tag of $87,990. As for the Model X, the base variant is now priced at $77,990, with the plaid variant reaching $92,900.

In conjunction with this pricing update, Tesla North America announced the cessation of its referral programme benefits across all markets, effective April 30. The referral programme, a long-standing strategy utilised by traditional automakers to augment sales through incentives from existing customers, will no longer be in operation.

Elon Musk, CEO of Tesla, had previously postponed a scheduled trip to India, where he was expected to meet with Prime Minister Narendra Modi and unveil plans for Tesla's entry into the South Asian market, as reported by Reuters. Additionally, a recent internal memo revealed by Reuters indicated that Tesla was undergoing layoffs of over 10 per cent of its global workforce.

Earlier this month, Reuters disclosed that Tesla had scrapped plans for a much-anticipated affordable vehicle priced at $25,000, a move that investors had been banking on to propel mass-market growth for the company.

Despite these developments, Tesla is gearing up to release its first-quarter earnings report on Tuesday, providing stakeholders with a comprehensive overview of its financial performance during this period.

(With Reuters inputs.)