Tesla Cut Prices of Model Y, X and S Amidst Delivery Shortfalls

Tesla has slashed prices on its Model Y, Model X, and Model S vehicles in the US by $2,000 each, according to the company website update. 

This price cut comes just days after Tesla's first-quarter deliveries fell short of market expectations.

The price reduction affects all trims of the Model Y, with the base variant now starting at $42,990, the Long Range at $47,990, and the Performance at $51,490. 

The Model S and Model X also received price cuts, with the base Model S now priced at $72,990 and the plaid variant at $87,990. The Model X base variant now starts at $77,990, while the plaid variant comes in at $92,900.

This price adjustment comes amidst a series of recent developments for Tesla. In a separate post on its X platform (formerly Twitter), Tesla North America announced the end of its referral program benefits in all markets after April 30th. 

The referral program offered additional incentives to buyers referred by existing Tesla customers, a strategy commonly used by traditional automakers to boost sales.

Furthermore, on Saturday, Elon Musk postponed a planned trip to India, where he was expected to meet with Prime Minister Narendra Modi and announce plans for Tesla's entry into the South Asian market.

This delay follows news from earlier this week that Tesla laid off over 10% of its global workforce, according to an internal memo sighted by RocketParrot.

These developments come on the heels of Tesla cancelling its long-promised $25,000 electric car earlier this month, a vehicle that many investors were counting on to drive mass-market growth for the company. 

Additionally, Tesla's global vehicle deliveries in Q1 2024 fell for the first time in nearly four years, despite previous price cuts aimed at stimulating demand.

With Tesla set to report first-quarter earnings on Tuesday, these recent actions raise questions about the company's future direction and its ability to meet investor expectations.