- Tesla’s hands-free driving assistant, FSD, now costs just $8,000, down from $12,000, following a weekend price cut.
- In addition, Tesla has cut prices for the Model Y, S, and X by $2,000 each in the U.S.
- The automaker will also end its referral program on April 30.
Tesla capped off a wild week by cutting prices across its lineup. While fluctuating prices are nothing new for the direct-to-consumer automaker, the depths of the price drops, and the products being discounted, are noteworthy.
For starters, late on Saturday, Tesla decided to cut the price of its Level 2+ advanced driver assistance system, FSD. Buyers can now get the hands-free driving system for just $8,000 in the U.S., a third less than they could on Friday.
Read: Tesla To Slash Over 10% Of Its Workforce As EV Slowdown Hits
The move follows a cut to the monthly fee owners pay for the system, though the earlier change did not affect the total price of the system. It also comes soon after the latest version of FSD was introduced. Bloomberg reports that Tesla’s automated driving systems have been key to its high valuations.
Meanwhile, the EV manufacturer reduced the prices of the Models Y, X, and S by $2,000 each, in the U.S. Reuters reports that the Model Y’s new base price of $42,990 is the least the automaker has ever demanded for the all-electric crossover, which was one of the top-selling vehicles on earth in 2023.
The long-range and performance variants of the Model Y now start at $47,990 and $51,490. The cheapest Model S now costs $72,990, and the Plaid starts at $87,990. For the Model X, the base model can be had for $77,990 and the Plaid variant comes in at $92,900.
Price Drops In China Too
Meanwhile, Tesla has also slashed prices in China, its second-largest market after the U.S Discounts are now being offered across the entire lineup, with the Model 3 starting at 231,900 yuan (approximately US$32,000 at current exchange rates), down from 245,900 yuan (approximately US$33,900), and the Model Y now priced at 249,900 yuan (approximately US$34,500), down from 263,900 yuan (approximately US$36,400).
With the reduced prices comes the end of Tesla’s referral program. Set to conclude on April 30, the scheme offered owners additional incentives if their friends or family purchased one of the brand’s vehicles based on their recommendation.
The price reductions come after a challenging week for the automaker, during which it recalled nearly 3,900 Cybertrucks due to an accelerator pedal issue, implemented layoffs affecting 10 percent of its global workforce, experienced the departure of two key executives, and sought investor approval for a $56 billion pay package for Musk.
The resulting turmoil, coupled with Tesla’s disappointing sales in the first quarter of 2024, has led to a 40 percent decline in its share price year-to-date.
