Summary
Tesla's stock price dropped by about 4% after introducing cheaper versions of its Model Y and Model 3 vehicles in the US. The price reduction of $5,000 did not meet investor expectations, as the company faces challenges from reduced government support, increased competition, and lower sales.
Key Facts
- Tesla introduced lower-priced versions of Model Y and Model 3 cars in the US.
- The new car models are $5,000 cheaper than previous versions.
- Tesla's shares fell about 4% following the announcement.
- The company is coping with the end of a US tax credit for electric vehicles, which may affect sales.
- Tesla has faced increased competition from Chinese carmakers.
- Elon Musk scrapped plans for a cheaper car to focus on robot taxis and humanoid robots.
- Tesla's sales fell by 12% in the second quarter, marking the largest drop in at least ten years, as deliveries decreased by 14%.
- Tesla raised vehicle prices by up to $7,500 after the tax credit expired in September.
