Tesla reduces prices on Model Y, S, and X vehicles in the U.S. following a challenging week

Tesla, the electric vehicle giant led by Elon Musk, made headlines late Friday as it slashed prices on three of its models in the United States. The move comes amidst a challenging period for the company, with falling sales and increased competition in the electric vehicle market.

The price cuts affected the Model Y, Model X, and Model S, with the starting price for a Model Y now at $42,990, a Model S at $72,990, and a Model X at $77,990. This reduction in prices is seen as a strategy to attract more car buyers as Tesla’s stock price has plummeted by about 40% this year.

Elon Musk took to Twitter to highlight that the cost of an entry-level Tesla could be as low as $29,490 when factoring in a federal tax credit and gas savings. Industry analysts have been eagerly awaiting the introduction of a smaller, more affordable electric vehicle from Tesla, but recent reports of the cancellation of the Model 2 project have created uncertainty.

In addition to the price cuts, Tesla also made headlines this week for announcing a global staff cut of 10% and recalling nearly 4,000 Cybertrucks due to a potential accelerator pedal issue. Musk also postponed a planned trip to India to meet with Prime Minister Narendra Modi, citing “very heavy Tesla obligations.”

With Tesla set to announce its first-quarter earnings soon, all eyes are on the company as it navigates through a challenging period in the electric vehicle market.