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Business News/ Markets / Stock Markets/  Tesla shares tumble over 4% as EV maker cuts prices
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Tesla shares tumble over 4% as EV maker cuts prices

At 1:47 p.m. EDT, Tesla stock was down $4.27, or 2.97%, at $142.83, in New York.

Tesla stock has lost about 41 per cent of its value so far this year. (REUTERS)Premium
Tesla stock has lost about 41 per cent of its value so far this year. (REUTERS)

Tesla Inc. shares tumbled more than 4 per cent on Monday, as the electric vehicle maker cut the price of its so-called “Full Self Driving" system by about a third.

The price cuts come ahead of its first quarter earnings on Tuesday.

At 1:47 p.m. EDT, Tesla stock was down $4.27, or 2.97%, at $142.83, in New York.

ALSO READ: Wall Street week ahead: Focus on US GDP data, earnings from Microsoft, Alphabet

Monday's drop was set to erase about nearly $20 billion from its market value of $468 billion, based on its total outstanding shares.

In an effort to boost demand, Elon Musk-led Tesla slashed prices by up to $2,000 on its vehicles such as the Model 3 and Model Y in several markets including the United States, China and Germany over the weekend.

Earlier this month, CEO Elon Musk had announced an event in August to unveil its "Robotaxi".

The Tesla stock has lost about 41 per cent of its value so far this year.

US stocks rose on Monday in choppy trading after steep losses in the previous session.

At 11:45 a.m. ET, the Dow Jones Industrial Average was up 49.62 points, or 0.13 per cent, at 38,036.02, the S&P 500 was up 12.74 points, or 0.26 per cent, at 4,979.97, and the Nasdaq Composite was up 39.31 points, or 0.26 per cent, at 15,321.32.

Layoffs

Tesla Inc. slashed a newly formed marketing team as part of company-wide layoffs, reported Bloomberg on Monday.

The layoffs indicate a pullback from Tesla’s nascent advertising initiative. The electric automaker

“The company’s “growth content" team in the US, a group of about 40 employees run by senior manager Alex Ingram and reporting to Jorge Milburn, was eliminated in the ongoing job cuts," said the report citing people familiar with the matter.

“There were also significant layoffs in Tesla’s design studio and staff located in Hawthorne, California," it added.

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Published: 22 Apr 2024, 11:30 PM IST
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