Elon Musk could start making less money, because the Tesla has decided to reduce the prices of electric cars by $2,000 Best sellers: Model Y, Model S and Model.
The reason? This measure was implemented after the company Tesla recorded a low level of sales during the first quarter of 2024 and this contributed to an increase in car inventory.
Currently the cheapest version of the Model Y, it is a mid-size SUV, around $42,990 in USA and this was the initial price of the vehicle. While the price of Model X, the SUV that offers the highest performance, is also sold at the lowest price in its history. Even The Tesla brand also reduced the prices of the most expensive versions by $2,000 of the Model Y.
Unfortunately, the measure applied to the prices of electric cars of Tesla could also affect workers, since Elon Musk announced that he will reduce the number of employees by more than 10 percent Worldwide. Even two top executives have also already left.
To address this problem, Tesla will ask shareholders to vote on a new compensation package equivalent to $56 billion for Musk that had already been annulled by a Delaware court at the start of the year.
In the first quarter of the year, the company tesla managed to sell a total of 386,810 electric vehiclesHowever, this figure is well below specialist estimates. It is the first drop in sales that has occurred two years in a row since the start of the COVID-19 pandemic.
Furthermore, the Tesla company is facing a negative streak, because Its shares have fallen more than 40 percent so far this year; amid concerns about falling sales, intensifying competition in China and Musk’s risky plan to promote autonomy.
How did BYD manage to dethrone Tesla in such a short time?
The main fighters of electric cars are teslawhich was recently surpassed by BYD, a Chinese company that fully entered the business just over two years ago.
In it fourth quarter of last year, BYD or Build Your Dreamssold more cars than Tesla, which has been a leader in the industry for yearswith 526 thousand 409 units of the Chinese company about the 483,173 deliveries made by Elon Musk’s renowned brand.
For the first quarter of this year, both companies slowed down; however, The fight continues strong for the ‘throne’ of the electrics. But this contest is not only between Tesla and BYD, but the governments of the United States and China also contribute to help their respective industries.
BYD, for example, received about 3.7 billion dollars of the Chinese government recently with the aim of continuing its global leadership. Meanwhile, the United States, which is coming out of a crisis due to strikes in the automotive sector last year, plans to implement a series of measures to prevent the arrival of BYD and other Chinese cars to your market.
The factors why BYD ‘is eating away’ to other car companies are several, and with its possible arrival in Mexico and expansion throughout Europe puts the giants that dominated the market on alertas the world transitions to electric cars.
