Tesla cuts prices after massive Cybertruck recall

Tesla EV electric vehicles on display. Tesla products include electric cars, battery energy storage and solar panels.

Tesla has announced significant price reductions across several of its models, including the Model Y, Model S, and Model X, each reduced by $2,000 in the US. This pricing adjustment comes amidst a series of setbacks for the company, including workforce reductions, executive departures, legal challenges concerning CEO Elon Musk's compensation, and paused projects, as reported by Electrek.com.

The decision to lower prices does not affect the Model 3 or the recently recalled Cybertruck. However, it aligns with a pattern observed last quarter when Tesla temporarily discounted its popular Model Y in response to disappointing delivery results and rising inventory levels. This price reduction returns the Model Y to its lowest recent price point, equivalent to the temporary discount offered earlier in February.

It also seems that Tesla is ending its referral program, starting on April 30. However, Musk has stated that the program would be relaunched in the future.

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The new starting price for the Model Y RWD is now $42,990, down from $44,990. Other trims, including the Long Range and Performance models, have seen similar $2,000 reductions, bringing them to $47,990 and $51,490, respectively.

The more upscale Model S and Model X also enjoy the $2,000 discount, with the Model S now starting at $72,990 and the Model X at $77,990. This reduction marks the lowest price point for the Model X, which also qualifies for a federal tax credit, potentially reducing its upfront cost further.

Electrek notes that Tesla has not labeled these reductions as "temporary" — suggesting a potential strategic shift in pricing. These cuts come at a time when Tesla is also promoting a new lease offer for the Model 3 at a reduced rate of $299 per month, down from $329.

This series of price adjustments appears to be a response to various internal and external pressures facing Tesla, aiming to boost sales and address stock issues amidst ongoing challenges.

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