Tesla (NASDAQ:) has cut prices on several of its electric vehicle (EV) models in the United States, with cuts reaching as high as $2,000. This marks another adjustment in its pricing strategy amid deteriorating market conditions.
The price cut affects Tesla’s Model Y, Model S and Model X, although prices for the Model 3 and the newly launched Cybertruck remain unchanged, Electrek reported.
Tesla shares plummeted again on Friday and are down more than 40% year to date.
The move brings the price of Model Y, Tesla’s best-selling model, back to its lowest level ever, in an attempt to boost sales after a quarter characterized by disappointing delivery data. The company’s quarterly report showed a significant increase in inventory levels.
The pricing adjustment comes at a tumultuous time for Elon Musk’s company, which recently reduced its workforce by 10% and saw the departure of two high-ranking executives.
Investors were particularly disappointed that Tesla suspended plans for a more affordable $25,000 car.
As a result, analysts have made changes to their models on Tesla with Deutsche Bank downgrading its rating to Hold.
“We view Tesla’s shift as a thesis change and fear the stock will have to undergo a potentially painful transition in ownership base, with investors previously focused on Tesla’s EV volume and cost advantage potentially throwing in the towel, and ultimately replaced by AI/technology investors with considerably longer time horizons,” Deutsche Bank analysts said.