Hard times for Tesla

Elon Musk’s Tesla is going through a rough patch as company stock slid more than 40% due to declining EV sales in the country and China. Price cuts and drastic changes in plans by its CEO have also added to the company’s woes.

EV price cuts
Tesla, on Friday, slashed the starting prices of its Model X, Y and S by $2,000 in the US and reportedly lowered the cost for all its EVs in China, Germany, and other countries in Europe, the Middle East and Africa.

Price cuts highlight the troublesome period the company has had. Musk initiated the company’s largest-ever layoff, the EV maker recalled roughly 4,000 Cybertrucks, and it also recently decided to pivot away from its plans to make affordable EVs to prioritize robotaxi.

This year, Tesla is expected to report a 40% decline in operating profit and its first revenue decrease in four years on Tuesday, according to Bloomberg.

Plans for an investment announcement in India were also abruptly canceled.

It is unclear how the investors will view the changes.