Tesla announced a price cut of $2,000 on its Model Y, Model X, and Model S vehicles in the United States. This move came shortly after the company reported lower-than-expected delivery numbers for the first quarter. The price adjustments are part of Tesla’s strategy to increase sales and market reach after recent financial setbacks.

New Pricing Strategy

Effective Friday, Tesla has revised the starting price of the base variant of the Model Y to $42,990, with its long-range and performance variants now priced at $47,990 and $51,490, respectively. These new prices are part of Tesla’s broader strategy to enhance sales and expand its market presence. Details of the adjusted pricing are available on Tesla’s official website.

For its luxury models, the starting price for the Model S has been set at $72,990, and its Plaid variant is now $87,990. The base variant of the Model X is listed at $77,990, with the Plaid variant available for $92,900.

Additionally, Tesla North America will discontinue its referral program on April 30. The scheme previously rewarded Tesla owners for referring new customers, mirroring tactics used by other manufacturers to leverage customer networks for sales growth.

Canceled Plans and Organizational Changes

In related developments, Elon Musk has canceled his planned trip to India where discussions with Prime Minister Narendra Modi were on the agenda, aimed at exploring Tesla’s expansion into the South Asian market. The cancellation, attributed to Tesla’s recent disappointing delivery figures, was first reported by Reuters.

Tesla is also undergoing significant organizational changes, with an internal memo revealing plans to lay off over 10% of its global workforce. This reduction is part of Tesla’s efforts to streamline operations and mitigate costs in facing tough market conditions.

Previously anticipated developments, such as the launch of a budget-friendly electric car priced at $25,000, have been shelved. This move leaves investors and potential buyers questioning Tesla’s future direction in the mass market.

Despite these price cuts, Tesla continues to grapple with sustaining vehicle demand. Tesla is expected to release its first-quarter earnings report on Tuesday, which will provide further insights into its financial standing and strategic plans moving forward.

Image Source: WIRED