On the morning of April 21st, Tesla China's official website showed that the price of all Tesla Model 3 /Y/S/X models was reduced by 14,000 yuan. After the price cut, the starting price of Model 3 was adjusted to 231,900 yuan, and the starting price of Model Y was adjusted to 249,900 yuan.
At the same time, Tesla has also canceled the 5-year 0-interest financial policy for MOodel 3 models, which was just launched on April 3, and now only Model Y is left to enjoy this financial offer.
Tesla Price Decreases Across the Board
On the 21st, Tesla China's official website showed that the price of Model 3 Refreshed Edition was reduced to 231,900 yuan or 5.7%; the price of Model 3 Long Range Refreshed Edition was reduced to 271,900 yuan or 4.9%; the price of Model Y was reduced to 249,900 yuan, the price of Model Y Long Range Edition was reduced to 290,900 yuan, the price of Model Y High-Performance Edition was reduced to 354,900 yuan, and the price of Model Y High Performance Edition was reduced to 354,900 yuan. The Model Y is priced at CNY 249,900, the Model Y Long Range version is priced at CNY 290,900, and the Model Y High Performance version is priced at CNY 354,900. The Model S is priced at CNY 684,900, and the Model S PLAID version is priced at CNY 814,900. The Model X is priced at CNY 724,900, and the Model X PLAID version is priced at CNY 824,900.
In addition, price cuts also swept the U.S. market. Yesterday Tesla's U.S. website showed that the price of Tesla Model Y was lowered to $42,990, the price of Model Y Long Range Edition was lowered to $47,990, and the price of Model Y High Performance Edition was lowered to $51,490. Tesla Model S drops to $72,990 and Model S PLAID drops to $87,990. Tesla Model X prices dropped to $77,990 and Model X PLAID prices dropped to $92,990.
It's worth noting that this is just 20 days after Tesla's most recent price hike, and Tesla has not responded to this price cut as to why Tesla made such a split decision in just three weeks.
Previously, prices were raised five times in less than six months
Counting Tesla China's price increase operation at the beginning of April this year, it has raised prices five times in less than half a year.
On October 27, Tesla raised the price of the domestic Model Y high-performance version by 14,000 yuan, with an adjusted price of 363,900 yuan.
On November 9, Tesla announced an increase in the price of the Model 3/Y long-range version, the Model 3 long-range refreshed version price increase of 1,500 yuan; and the Model Y long-range version price increase of 2,500 yuan.
On November 14, Tesla announced that the starting price of Model 3 and Model Y rear-wheel-drive versions increased. Among them, the Model 3 rear-wheel drive refreshed version price increased by $1500, an adjusted starting price of 261,400 yuan; the Model Y rear-wheel drive version price increased by $2500, an adjusted starting price of 266,400 yuan.
From November 21, the Model Y long-range version price was raised by RMB 2,000 to RMB 304,400 yuan.
On April 1, Tesla China's official website showed that the Model Y rear-wheel drive version price was raised to 263,900 yuan, the Model Y long-range version price was raised to 304,900 yuan, and the Model Y high-performance version price was raised to 368,900 yuan, with price increases of 5,000 yuan.
Tesla stock price fell more than 40% in the year
Tesla announced on the 15th that it was laying off 14,000 employees worldwide, more than 10% of its total workforce. Musk said in an email that it was a tough decision. He said it would keep the company lean, innovative, and moving into the next growth cycle.
According to MarketWatch, one laid-off employee said she received the email on her day off, "The email was sent in the middle of the night with no advance notice, which is so unethical."
Notably, Tesla Senior Vice President Drew Baglino and Tesla Vice President of Public Policy Rohan Patel are also leaving the company.
It is widely believed in the market that the main reason for the layoffs is also the slowdown or even decline in its sales growth. Robert W. Baird analyst Ben Kallo recently said in an interview with Bloomberg that Tesla's sales could fall again in the second quarter of 2024, following an unexpected decline in sales in the first quarter of 2024.
With big layoffs and executive departures, Tesla's recent "woes" have taken a heavy toll on CEO Elon Musk's net worth.
This week, Tesla's stock price is falling every day, totaling a weekly decline of about 14.03%, down more than 40% so far this year. The latest share price is $147.05, and the total market capitalization is $467.460 billion, which has evaporated more than $300 billion (about Rs. 2,172.1 billion) compared to the end of last year.
Forbes data show that in 2022 Musk's net worth reached $219 billion, however, since then, Musk's net worth has fallen about $39.8 billion (about 288.1 billion yuan).
The key factor in Musk's wealth "cut" is the share price of Tesla, in which he owns 13% of the shares, and these shares account for a large part of his wealth. Tesla's stock price has plummeted to $155 from a peak of $415 adjusted for the 2021 stock split, a drop of more than 62%. The plummeting stock price has caused Tesla's market capitalization to fall to $467.4 billion from a peak of $1.2 trillion. Musk's net worth has plummeted as a result.
Musk's 2024 is off to a bad start. Currently, Musk is the third richest person in the world, behind Louis Vuitton chairman Bernard Arnault (personal net worth $214 billion) and Amazon founder Jeff Bezos (personal net worth $193 billion).
