Tesla (NASDAQ:) has cut prices on several of its electric vehicle (EV) models in the US, with cuts as high as $2,000. This marks another adjustment to its pricing strategy amid deteriorating market conditions.
The price cuts will affect the Tesla Model Y, Model S and Model X, although prices for the Model 3 and the recently released Cybertruck will remain unchanged, Electrek reports.
Tesla shares fell again on Friday and are down more than 40% since the start of the year.
The move returns the price of the Model Y, Tesla’s best-selling model, to its lowest level ever, in an attempt to boost sales after a quarter marked by disappointing delivery figures. The company’s quarterly report showed a significant increase in inventory levels.
The price adjustment comes at a turbulent time for Elon Musk’s company, which recently cut its workforce by 10% and saw the departure of two senior executives.
Investors were especially disappointed that Tesla suspended plans to produce a more affordable $25,000 car.
As a result, analysts made adjustments to their models for Tesla, and Deutsche Bank downgraded its rating to Hold.
“We believe the changes at Tesla are changing the narrative and are concerned that the stock will have to go through a potentially painful transition in ownership base as investors previously focused on Tesla’s EV volume and price advantage could potentially give up and end up being replaced by investors in Artificial Intelligence and Technology. with significantly longer time horizons,” say Deutsche Bank analysts.