Tesla is cutting prices on cars and software after a tough week

• Tesla cut car prices in the US, China and Europe after sales fell.
• The company also cut its software prices by a third in the US.
• The company’s challenges include disappointing delivery numbers, layoffs, and Cybertruck recalls.

Tesla is trying to bring customers back with cheaper cars and apps.

Electric car makers cut prices in key markets, including the US, China and Europe, over the weekend, as they grapple with falling sales and increasing competition.

The company also cut the price of its driver assistance program, Full Self Driving, by a third, to $8,000 in the US.

The changes come just before the EV maker reports first-quarter earnings on Tuesday. Profitable income has has fallen rapidly while Tesla has dropped prices before.

Tesla slashed the prices of many of its U.S. cars, cutting the cost of the Model Y, X, and S by $2,000. Reuters reported.

In the US, the cheapest Model Y and Model X – Both SUVs – are offered at a very low price. The The best-selling model Y it now starts at $42,990, per Tesla’s website.

The company did not change the price of the new Cybertruck or the Model 3 sedan.

“Tesla’s prices must change regularly to keep pace with production and demand,” CEO Elon Musk said wrote on X sunday

Tesla reported disappointing first quarter delivery earlier this month and through a 10% bad job worldwide Last week. The company also saw the departure of two chief executives, one in charge of electrical engineering and the other focused on business development. On Friday, Tesla recalled almost 4,000 Cybertrucks due to acceleration defects.

The recent challenges have caused headaches for Musk, who postponed a planned trip to India to meet Prime Minister Narendra Modi.

He also faces a big vote in June on his pay. of Musk 56 billion dollars in payments was overturned by a Delaware judge in January and shareholders will be asked to vote again on compensation at the company’s annual meeting. he said in a statement.

Tesla shares are less than 40% year so far. Investors are worried about slow sales amid high interest rates and increasing competition from EV manufacturers in China.

Even Musk’s latest announcement to launch a robot in August failed to reassure investors last week.