Tesla is overhauling its operations, affecting everything from the employees to the company's strategy. On Tuesday, Tesla removed all inventory discounts in the US, signaling the end of the price cut era. On Wednesday, Tesla announced new financing options in the US and Europe as it tries to fight sluggish demand.
The disappointing first-quarter production and delivery numbers were a wake-up call for Tesla, which has to confront a drop in demand for the first time. The realization made Elon Musk take swift action to turn around the company, whose market cap lost over 37% this year. Tesla shares trade at $155, a level not seen since December 2022, when Tesla began its fight against low demand and increased inventory.
Back then, Tesla cut the prices across its lineup, sending shock waves across the automotive industry. Many spoke about a price war, especially EV startups that saw their hopes of breaking even demolished. As the sole carmaker selling EVs profitably, Tesla could afford to lower prices, even if this meant shrinking margins. However, cash-strapped companies, already losing a lot of money while ramping up production, could not match Tesla.

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Tesla Offering 0% Financing Instead Of Additional Price Cuts

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