tesla (TSLA) on Saturday lowered the U.S. price of its Model Y, Model S and Model X by $2,000, the latest in a series of pricing moves by the EV giant. Meanwhile, Tesla CEO Elon Musk has postponed his visit to India.
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Model Y pricing starts at $42,990 before taxes and fees, excluding incentives. The entry price for the Model S is $72,990, while the Model X starts at $79,990. Model Y and Model X receive a $7,500 IRA credit.
Prices for the Tesla Cybertruck and Model 3 remain unchanged, and production volumes for both EVs are still low.
The Model Y list price is back to an all-time low. Tesla temporarily offered a $1,000 discount for most of February, bringing the price to $42,990. After the discount ended, Tesla announced that it would raise prices by another $1,000 on April 1st, which actually happened.
But last week, Tesla dramatically eliminated inventory discounts on the Model Y, reaching 10% off list price in some cases. Demo cars still have some discounts.
So, effectively, the price of the Tesla Model Y is significantly higher than it was just a few days ago.
Tesla plummets due to one big question on earnings release
It appears that major EV companies are trying to shore up their ever-decreasing profit margins. But that could be a huge blow to already struggling demand. Tesla’s global deliveries fell to just 369,783 vehicles in the first quarter, far below even the most bearish expectations, despite deep inventory discounts and the promise of an April 1 price increase.
Elon Musk’s trip to India delayed
Musk postponed a visit to India from Sunday to Monday that was scheduled to include talks with Indian Prime Minister Narendra Modi. Musk said on his social site ” he said.
The delay comes amid new reports that Musk intended to announce plans to build a Tesla factory in India. A factory in India would allow Tesla to avoid high auto tariffs. But without cheap EVs, it’s unclear how much demand there will be in India, where charging infrastructure is limited.
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Last week, Tesla announced plans to lay off more than 10% of its global workforce. This suggests that in addition to curbing inventory discounts, Tesla will further cut production due to weak sales.
All of this was announced ahead of Tuesday night’s Tesla earnings call, which was the focus of a conference call. Investors will want to know what Tesla’s strategy is to restore growth. Above all, will Musk allow Tesla to prioritize development of robotaxis and shelve development of low-cost EVs for years to come?
tesla stock
Tesla shares fell 14% last week to 147.05, the worst level since January 2003.
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