Tesla, the leading electric vehicle manufacturer, has announced a significant price cut for its Model Y, Model X, and Model S vehicles in the United States. The company reduced the prices of each model by USD 2,000 in response to lower-than-expected first-quarter deliveries.
According to a report by Reuters, Tesla’s global vehicle deliveries in the first quarter experienced a decline for the first time in nearly four years, despite previous price cuts aimed at boosting demand. In an effort to attract more customers, the company lowered the prices of its Model Y base variant to USD 42,990, while the long-range and performance variants are now priced at USD 47,990 and USD 51,490, respectively.
The basic version of the Model S now costs USD 72,990, with the plaid variant priced at USD 87,990. Similarly, the Model X base variant is now available for USD 77,990, while its plaid variant is priced at USD 92,900.
In addition to the price cuts, Tesla North America announced the discontinuation of its referral program benefits in all markets after April 30. The referral program, which provides extra incentives to buyers through referrals from existing customers, has been a long-standing strategy used by traditional automakers to drive sales.
Despite these developments, Tesla CEO Elon Musk has postponed his planned trip to India, where he was expected to meet with Prime Minister Narendra Modi and announce the company’s entry into the Indian market. The company is set to report its first-quarter earnings on Tuesday, as per Reuters.