Tesla has cut U.S. prices of both the Model S and Model X, CNBC reports.
The electric car manufacturer reduced the starting price of the Model S by a cool $3000 and the Model X by $2000. This means the Model S now starts at $71,250 while the Model X can be purchased from $71,950.
In a statement, Tesla says that it periodically adjusts prices and available options for its vehicles just like many other car manufacturers but the company didn’t provide any specifics as to whether slowing sales of these two models influenced its move to lower prices.
Adjustments to the Model S and Model X pricing comes at a time when Tesla is facing renewed skepticism from investors concerned about the company’s inability to turn a consistent profit and keep the car manufacturer growing. Tesla stock has fallen from $262 per share on April 22 down to $205 as of May 20. This is also down significantly from the $376 which Tesla shares reached in December 2018 and well down from the record-high of $383 reached in the middle of 2017.
“The business fundamentals of Tesla always have been shaky, but the stock price has been buoyed by the story that this is a company that was going to do huge things,” Navigant Research analyst Sam Abuelsamid said. “What we’ve seen in the last month or so is people are starting to recognize maybe that wasn’t really true.”
Tesla is delivering more cars than it ever has before but is still burning through cash, prompting chief executive Elon Musk to announce comprehensive layoffs and a number of other initiatives designed to reduce costs. The car manufacturer lost an extraordinary $702.1 million in the first quarter.