Even though sales of electric vehicles (EVs) have dropped, Tesla has stopped discounting all of its inventory. This is part of CEO Elon Musk’s bigger, less clear plan to “streamline the whole Tesla sales and delivery system.”
Musk replied to a comment on X, the social media site he owns, with the words “It has become complex and inefficient.”
Musk’s news about X comes a day after thousands of Tesla workers were laid off. More than 10% of the staff, or about 14,000 people, will be let go because the company wasn’t making enough money, a source told TechCrunch.
This week, Tesla fired a delivery worker who spoke to TechCrunch on the condition of anonymity. They said that their site was “short staffed” but still lost several employees. Tesla also seems to have taken down most of the job postings on its North America careers page, leaving only a few linked to its Manufacturing Development Program. This suggests that the company has stopped hiring.
Talked to Rohan Patel, who used to be Tesla’s VP of Public Policy and Business Development. He also left the company on Monday because of “big overall changes” at the company. Drew Baglino, who used to be Tesla’s SVP of Powertrain and Energy, and Patel were the two well-known leaders who quit this week.
Tesla had a bit of a rough patch when it decided to stop deals on all of its cars in the US. This includes the Model 3, Model Y, Model S, and Model X. Prices went up for most of 2022. The next year, Tesla started regularly lowering the prices of all of its cars. Some models saw price drops of almost 20%, and the trend has continued this year. The price of many long-range and speed Model Ys dropped by $5,000 by April. The price of models with rear-wheel drive dropped by more than $7,000.
It also comes after Tesla said last week that it would lower the monthly fee for its Supervised Full Self-Driving software, which is its advanced driver assistance system, from $199 per month to $99 per month.
In 2023, Tesla cut prices, which may have helped the company sell a record 1.8 million cars, but it also cut into the company’s profits. The number of Tesla deliveries dropped year-over-year in the first quarter of 2024. Also, the car company made more cars than it shipped. This has happened seven of the last eight quarters, which could mean that Tesla will refocus on this area this year.
In January, Tesla did say that sales growth might be “notably lower” in 2024 than in previous years because the company is getting ready to launch a new car platform. This includes the $25,000 EV that seems to have been shelved in favor of a robotaxi by August.
It’s not clear how taking away discounts on Tesla cars fits into the company’s new plan to make sales and delivery faster. You tried to get in touch with Tesla but couldn’t.
A lot of praise has been given to Tesla for its direct-sales model, which skips the standard dealer setup. This took many years and legal battles to achieve. But after the first buy, Tesla has almost always changed how it sells and delivers its cars. The car company has almost always changed how it sells and delivers cars.
Also Read: Sources Say That Tesla Fired Some Departments and Let Go of Some Good Performers
Musk said at the end of 2018 that Tesla had bought an unknown number of trucking companies in order to ship more Model 3 cars. Early in 2019, Musk suddenly said that Tesla would be closing many of its shops and letting people go in order “to save the money needed to make the Model 3 and stay in business.” After less than two months, the company changed its mind. Tesla recently said in late 2022 that it was getting harder and harder to make and ship as many cars as it normally does at the end of each quarter. That process was supposed to be smoothed out by Tesla, but after more than a year, it’s still having problems every three months.
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