Tesla, the leading electric vehicle (EV) manufacturer, has recently made headlines due to a series of price cuts and investigations. In the United States, Tesla reduced prices for its Model X, Model Y, and Model S by approximately $2,000 each. This move came after below-anticipated delivery figures for the first quarter of 2024 were recorded by the company.
In China, Tesla lowered prices for all models on sale there by over 5%, making them more affordable to consumers in its largest market outside of the United States. The company also reduced prices of most cars in Germany.
These price cuts come amidst a slumping sales period for Tesla. The company had planned to introduce a value-focused Model 2 priced at around $25,000 but ultimately scrapped those plans. Elon Musk, the CEO of Tesla, also postponed his trip to India where he was expected to announce Tesla's entry into the South Asian market.
Additionally, Tesla faced an investigation by the National Highway Traffic Safety Administration (NHTSA) in the United States regarding steering problems with over 334,000 electric vehicles. The probe has now been upgraded to an engineering analysis and may lead to a recall. Drivers have reported loss of steering control, reduced power assisted steering, and the inability to turn the wheel or requiring more effort.
Despite these challenges, Tesla remains committed to affordability as a key component of its mission. The price cuts make Tesla's vehicles more accessible to consumers and could potentially boost sales. However, it remains to be seen how these developments will impact the company's financial performance in the long term.
