Tesla Offers Lower Cost Electric Vehicles In Effort To Boost Sales

Tesla Inc. (NASDAQ:TSLA) has announced that it is introducing lower-priced versions of several of its electric car models in an effort to rebound from a sharp decline in sales.

The automaker is reintroducing lower priced versions of its Model S and Model X vehicles that each have shorter driving ranges, Tesla said in a written statement released to media. Also new are redesigned drive-trains on more expensive variants of the cars, allowing buyers to get "more range out of every dollar spent on charging," the company said.

The new products come as Chief Executive Officer Elon Musk struggles to accelerate Tesla’s sales and bring his cars to market worldwide. Deliveries dropped steeply in the first quarter of the year – falling by 30,000 cars from the preceding period as several countries, including the U.S., eliminated the tax incentives offered on electric vehicles.

Tesla shares have fallen 10% since April 3, the day before the automaker reported the delivery decline in the first quarter.

Expectations for Tesla’s first-quarter earnings have moved from a $217 million U.S. pre-tax profit to a $232-million U.S. loss after the company disclosed an 11% sequential production drop from the fourth quarter of 2018, including a 40% decline in the high-margin Model S and X models.