Tesla's Decline; After a Tough Week, Prices of Three Models of Tesla Electric Cars Decrease in the U.S.

Tesla late Friday reduced the prices of three of its five models in the United States by $2,000. This price drop is another sign of the challenges faced by the electric car giant led by American billionaire Elon Musk. This action followed a sharp decline in Tesla's stock on Friday, which erased all the gains the company had made in the past year. Tesla's stock has decreased by about 40% so far this year. In recent months, due to various issues, especially charging difficulties, buyer interest in electric vehicles in the United States has decreased. The decline in demand for electric vehicles in the U.S. is attributed to multiple factors, including a shortage and difficulty in accessing chargers, long wait times for charging, and increasing competition from luxury brands like Mercedes-Benz and BMW, all of which have contributed to this price drop. Alongside these issues, Tesla faces another problem: luxury competitors like Mercedes-Benz and BMW are offering much higher quality and more attractive vehicles at competitive prices in the highly competitive U.S. market. Tesla has reduced the prices of the Model Y, a small SUV that is Tesla's most popular model and the best-selling electric vehicle in the United States. The prices of the older and more expensive Model X and Model S have also been reduced, while the prices of the Model 3 sedan and Cybertruck remained unchanged. This price reduction has brought the starting prices in the U.S. for the Model Y to $43,000, the Model S to $73,000, and the Model X to $78,000. Musk wrote early Saturday on the platform X that the cost of a base Tesla, after accounting for federal tax credits and gas savings, is only $30,000. However, while some were waiting for the introduction of Model 2, a low-cost electric vehicle from Tesla, reports have emerged about the possibility of Musk abandoning this project, raising further uncertainties about the company's future. Recently, the company announced it would reduce its global workforce by 10%, or about 14,000 jobs. The company also announced a recall of nearly 4,000 of its Cybertrucks after discovering that the gas pedal might get stuck, potentially causing unintended acceleration and increasing the risk of accidents. Musk confirmed on Saturday that he postponed a planned weekend trip to India to meet with Prime Minister Narendra Modi due to 'Tesla's heavy commitments.' He expressed eagerness to reschedule this trip for later this year. Meanwhile, Tesla is set to release its first-quarter financial results on Tuesday. Initial reports indicate that due to increased competition and failure to attract more buyers despite price reductions, the company's global sales from January to March 2024 are expected to decline significantly. Changes in Tesla's strategy: focus on robotaxis instead of low-cost vehicles. The U.S.-China electric vehicle dispute; Beijing has complained to the World Trade Organization. Elon Musk announced the possibility of removing the display of the number of 'likes' and 'retweets' on X. Senator Rubio: Imposing import tariffs on Chinese cars is essential for protecting America. A court in the U.S. annulled a $55 billion bonus for Tesla's board to Elon Musk. Protests against Tesla in Sweden have received support from Northern European labor unions.