Tesla reduces prices of Model Y, X, S in the US by $2,000

Tesla, the world’s most valuable automaker, has announced price cuts for its Model Y, Model X, and Model S vehicles in the United States. The company reduced the prices of each model by $2,000 in response to lower-than-expected first-quarter deliveries.

The base variant of the Model Y now costs $42,990, while the long-range and performance variants are priced at $47,990 and $51,490, respectively. The Model S basic version is now priced at $72,990, with the plaid variant at $87,990. The Model X base variant costs $77,990, and the plaid variant is priced at $92,900.

In addition to the price cuts, Tesla North America announced the end of its referral program benefits in all markets after April 30. The referral program, which provided extra incentives to buyers through referrals from existing customers, was a strategy used by traditional automakers to boost sales.

Tesla CEO Elon Musk has postponed his planned trip to India, where he was set to meet Prime Minister Narendra Modi and announce plans to enter the South Asian market. The company also recently laid off more than 10% of its global workforce and canceled a long-promised inexpensive car expected to cost $25,000.

Despite these challenges, Tesla is set to report its first-quarter earnings on Tuesday. The company’s global vehicle deliveries fell for the first time in nearly four years in the first quarter, as price cuts failed to stimulate demand. Stay tuned for updates on Tesla’s financial performance and future plans.