Tesla has implemented a fresh round of price reductions for its vehicles in the United States, China, and Germany.
Following the market close on Friday, Tesla introduced a fresh round of price cuts in the United States. The company cut the prices of its Model Y, Model X and Model S vehicles by $2,000. On Saturday, Tesla cut the price of its Full Self-Driving software from $12,000 to $8,000 in the U.S.
Following the price cuts in the U.S., Tesla slashed prices in a number of other major markets, including China and Germany, per Reuters. Tesla reportedly cut the revamped Model 3 prices by 14,000 yuan ($1,930) in China. In Germany, the price of the Model 3 rear-wheel-drive was reportedly lowered to 40,990 euros ($43,670.75) from 42,990 euros. A Tesla spokesperson also reportedly said the company introduced price cuts in several other countries in Europe, the Middle East and Africa.
The news comes amid a multi-day slide for Tesla stock that has seen shares fall to their lowest levels in 15 months. Last week, Tesla shares faced selling pressure on reports the EV maker was planning to lay off more than 10% of its workforce. Separate reports also suggested that Tesla had pushed back the scheduled delivery dates for multiple Cybertruck buyers without providing a reason for the delay. Tesla shares may also be facing continued selling pressure as investors brace for earnings on Tuesday. Tesla is expected to report earnings of 51 cents per share and revenue of $22.33 billion this week, according to estimates from Benzinga Pro.
Tesla has been under pressure in recent months due to slowing demand trends. The EV maker has reported weak quarterly results in two consecutive quarters and many analysts are concerned the company will turn in disappointing results again this week. GLJ Research analyst Gordon Johnson recently warned that Tesla could report its first negative free cash flow quarter since 2020 this week. Wedbush’s Dan Ives called this earnings report a fork in the road for Tesla and stressed that the Street needs answers from Musk. All eyes will be on margins and the company’s outlook.
