Tesla has slashed the price of its driver assist software by one-third, to $8,000, in its home market ahead of its first quarter earnings report, to be announced tomorrow. The cost of the level 2 autonomous system, which is called ‘Full Self-Driving’ but still requires drivers to remain vigilant and ready to take control, was […]
Tesla has slashed the price of its driver assist software by one-third, to $8,000, in its home market ahead of its first quarter earnings report, to be announced tomorrow.
The cost of the level 2 autonomous system, which is called ‘Full Self-Driving’ but still requires drivers to remain vigilant and ready to take control, was reduced in the US on Saturday and announced on the automaker’s website.
The news follows further price slashes on Tesla vehicles, announced on Friday, when it was reported by Reuters that the company cut $2000 off the asking price of three out of five model cars in the US.
“Tesla prices must change frequently in order to match production with demand,” Musk posted on X,-on Sunday.
These price reductions reflect intense competition for customers in the EV vehicle production industry, particularly from China with firms such as Li Auto Inc and BYD Co discounting some of its most popular cars – some of which now retail for under $10,000.
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It’s been a rocky road for the Elon Musk-owned EV maker, with the company expected to report a 40% plunge in operating profits this quarter.
Tesla laid off 10% of its staff last week and on Friday was also forced by the National Highway Traffic Safety Adminstration to recall nearly 4,000 of its stainless steel bodied EV cybertrucks because of faulty accelerators.
