Tesla (NASDAQ:) has reduced the prices of several electric vehicle models in the United States, with reductions of up to $2,000. This is a further revision of the pricing policy due to worsening economic conditions.
The price cut affects the Model Y, Model S, and Model X. However, the prices of the Model 3 and the recent Cybertruck have not been changed, as reported by Electrek.
Tesla shares fell once again on Friday and have fallen more than 40% since the beginning of the year.
This strategy lowers the price of the Model Y, Tesla’s most popular model, to its previous lowest level in an effort to boost sales after a quarter that ended with lower-than-expected delivery numbers. The company’s quarterly report indicated notable growth in unsold inventory.
The price changes come during a difficult period for Elon Musk’s company, which recently reduced staff by 10% and saw the resignation of two top executives.
Investors were particularly disheartened that Tesla postponed development of a cheaper car priced at $25,000.
As a result, financial analysts have revised their forecasts on Tesla, with Deutsche Bank changing its recommendation to Hold.
“We perceive Tesla’s change in strategy as a significant shift and are concerned that the stock may be going through a difficult period of change in its investor base. Investors previously focused on Tesla’s electric vehicle production and cost leadership may disengage and, over time, may be replaced by AI/technology investors who have much longer investment horizons,” Deutsche Bank analysts said.
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