Tesla Slashes Prices and Ends Referral Program

Price Cuts Across Tesla’s Lineup

Tesla has made significant price reductions across its lineup, with the Full Self-Driving (FSD) system now priced at $8,000, down from $12,000. Additionally, the Model Y, S, and X have each seen a $2,000 price cut in the U.S.

End of Referral Program

On April 30, Tesla will be ending its referral program, which offered incentives to owners whose friends or family purchased a Tesla based on their recommendation.

Tesla’s Strategic Moves

These price drops come amidst a challenging week for Tesla, which included recalls, layoffs, executive departures, and seeking investor approval for a significant pay package for Elon Musk.

Price Reductions in China

Not limited to the U.S., Tesla has also slashed prices in China, offering discounts across its entire lineup. The Model 3 now starts at 231,900 yuan, while the Model Y is priced at 249,900 yuan.

Tesla’s Turmoil and Market Response

With disappointing sales in the first quarter of 2024 and a 40% decline in share price year-to-date, Tesla is navigating through a challenging period marked by significant changes in pricing and operations.