Tesla cuts prices on three models after tumultuous week and ahead of earnings

Tesla cut prices on three of its models Friday after reporting a sales miss earlier in the month.

The company lowered the price of its Model Y, Model X and Model S vehicles by $2,000.

Tesla CEO Elon Musk posted on X, the social media platform formerly known as Twitter that he owns, that the Model Y would cost $29,490 after a federal rebate and gas savings.

The actual starting price for the car on the Tesla website is $42,990.

The starting price of the Model X and the Model S are $72,990 and $77,990 respectively.

USA TODAY reached out to Tesla for comment Sunday and did not receive a response.

Price reductions after sales misses

The company produced over 433,000 vehicles and delivered approximately 387,000 vehicles, according to a press release on the company's quarterly delivery report.

The figures are a rare year-over-year decline in sales and a production miss, according to Electrek.

The company blamed its misses on "the early phase of the production ramp of the updated Model 3" at its Fremont factory in California and "factory shutdowns resulting from shipping diversions caused by the Red Sea conflict and an arson attack at Gigafactory Berlin."

Tesla will deliver its first quarter earnings after market close on Tuesday.

Tesla week begins with layoffs, ends with recall

The price slashing came at the end of tumultuous week for the electric car maker.

On Monday the company announced that it would lay off at least 10% of its employees.

Tesla had over 127,000 employees in 2022, according to the company's 2022 impact report. This number grew to 140,473 by the end of 2023, according to CNBC.

The company issued a recall of over 4,000 Cybertrucks Wednesday over a defect with the accelerator that caused the part to get stuck when pressed.

The recall affects all 2024 Cybertruck vehicles manufactured from Nov. 13, 2023, to April 4, 2024.

On the heels of the job cuts and the recall, Tesla asked shareholders to re-approve a $56 billion compensation package for Musk that had been blocked by a Delaware judge in January.

The company's largest retail shareholder and third largest individual shareholder, Leo Koguan, is reported by Electrek to be voting against the compensation package and the re-election of board members including Musk's brother Kimbal.

Contributing: Gabe Hauari, Jonathan Limehouse