Slumping Demand Forces Tesla to Lower Prices

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Slumping Demand Forces Tesla to Lower Prices
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Tesla lowered the prices of its cars around the world on Friday because they haven’t been selling as well. They made the Model X, Model Y, and Model S, which are some of their most popular cars, $2,000 cheaper. This happened after they didn’t sell as many cars as they thought they would in the first three months of 2024.

The price of the Model 3, which is their basic sedan, stayed the same. The Model Y, which is a small SUV, is their top-selling car and the most popular electric car in the country.

Now, if you consider federal tax credits and savings on gas, you can get a Model Y for a little less than $30,000. Tesla says they want their cars to be affordable for everyone.

This price drop comes after some bad news for the company. Reuters said Tesla canceled plans to make a cheaper car called the Model 2, which was supposed to cost about $25,000. Also, Elon Musk, the boss of Tesla, delayed a trip to India where he was going to talk about selling cars there.

Slumping Demand Forces Tesla to Lower Prices
Tesla Cars Price Slash (Credits: Tesla)

Last week, Tesla said they were laying off 10 percent of their workers, which is about 14,000 people.

Musk wrote a memo saying he really doesn’t like laying people off, but they have to do it to make the company better in the long run. He thinks being more efficient will help them grow again.

Tesla’s stock price has been going down a lot lately. Since the beginning of the year, it’s dropped by 40 percent. On Friday, it was less than $150 per share, which is almost half of what it was worth last July.

Tesla will share more about how they’re doing on Tuesday when they announce their earnings for the whole quarter. Last week’s sales numbers showed that they sold fewer cars than they did at the same time last year, which hasn’t happened in four years.


By Preksha Sharma

being me means you've got to love cars, coffee and gilmore girls. sorry i don't make the rules.

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