Tesla Drops Prices Again

By Douglas A. McIntyre Updated Apr 22, 7:16AM EDT · Published Apr 20, 8:31AM EDT

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Tesla Drops Prices Again — © y_carfan / iStock Editorial via Getty Images

Probably looking to keep its 51% market share in the United States, Tesla Inc. (NASDAQ: TSLA | TSLA Price Prediction) has cut prices on most of its models. It lowered prices on several late last year and early in 2024. Tesla’s issues may be so difficult that it is in deep trouble.

Reuters reports that, after a review of the Tesla website, the Base Model Y model price was cut to $42,990. The long-range and performance models were dropped to $47,990 and $51,490. The price of the Model S fell to $72,990. The price of the Plaid version fell to $87,990. The base Model X price was cut to $77,990. The Plaid version of the model was dropped to $92,900.

Tesla delivery and production figures fell more than expected in the most recently reported quarter. In the first quarter, Tesla produced over 433,000 vehicles and delivered approximately 387,000.

Tesla remains the U.S. market share leader by far. No other company has a double-digit share of the EV market in America.

Tesla suffers from a set of problems shared by all EV companies selling vehicles in the United States. People worry about battery charging time, the range of cars on a single charge, the number of charging stations, and prices. Many Americans have turned to hybrids, which only have a few of these challenges. Others have kept gasoline-powered cars. The cost of gas has been relatively low, but that could change because of turmoil in the Middle East.

Tesla’s stock has been badly hurt by its vehicle production, delivery figures, and quality control issues. The stock trades at a 52-week low of $147 and is down 41% this year. Price cuts may not be enough to reverse that trend.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.