Tesla cuts prices on Y, X and S models after a delivery error


Tesla cut prices on three of its models on Friday after a sales miss was reported earlier this month.

The company lowered the price of its Model Y, Model X and Model S vehicles by $2,000.

Tesla CEO Elon Musk posted on X, the social media platform formerly known as Twitter that he owns, that the Model Y would cost $29,490 after a federal rebate and gas savings.

The actual starting price for the car on Tesla’s website is $42,990.

The starting price of the Model X and Model S is $72,990 and $77,990 respectively.

USA TODAY reached out to Tesla for comment on Sunday and did not receive a response.

Price reductions after sales misses

The company produced more than 433,000 vehicles and delivered approximately 387,000 vehicles, according to a press release about the company’s quarterly delivery report.

According to Electrek, the figures represent a rare year-over-year sales decline and a production miss.

The company blamed its misses on “the early phase of production of the updated Model 3” at its Fremont plant in California and “plant closures due to shipping diversions caused by the Red Sea conflict and an arson at Gigafactory Berlin.” “

Tesla will announce its first quarter earnings on Tuesday after the market closes.

Tesla week starts with layoffs and ends with recalls

The price cut came at the end of a tumultuous week for the electric car maker.

On Monday, the company announced it would lay off at least 10% of its employees.

According to the company’s 2022 impact report, Tesla had more than 127,000 employees in 2022. According to CNBC, this number grew to 140,473 by the end of 2023.

The company recalled more than 4,000 Cybertrucks on Wednesday due to a defect in the accelerator pedal that caused the part to seize when pressed.

The recall affects all 2024 Cybertruck vehicles manufactured between November 13, 2023 and April 4, 2024.

Following the job cuts and recall, Tesla asked shareholders to reapprove a $56 billion compensation package for Musk that was blocked by a Delaware judge in January.

The company’s largest private shareholder and third-largest individual shareholder, Leo Koguan, is expected to vote against the compensation package and the re-election of board members, including Musk’s brother Kimbal, according to Electrek.

Contributions: Gabe Hauari, Jonathan Limehouse