Electric vehicle maker Tesla has reduced prices on two of its most expensive models according to CNBC, with USD3,000 (RM12,576) and USD2,000 (RM8,384) cut from the Model S and Model X, respectively. Prices were adjusted along with available options just like other car companies, Tesla said, following a prior increase in prices when greater battery range along with a new drive system and suspension were offered.

The price cuts represent reductions of about 2% and 3% for the Model S (now starting from USD65,750) and Model X (now starting from USD71,950) respectively. An earlier round of price cuts in January of US$2,000 per vehicle came as part of an acknowledgement that the looming expiry of a US$7,500 tax credit for Tesla EVs would hurt sales, with the federal tax credit for Teslas set to be phased out by the end of this year after a reduction previously.

The reduced prices come as Tesla stock faced scrutiny by investors, who are becoming skeptical of CEO Elon Musk’s ability to turn profits and continue growing the business, although the firm has thus far followed up the two models with announcements of the Model Y SUV, the compact Model 3, a new Roadster and a pick-up truck.

“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. What we’ve seen in the last month or so is (that) people are starting to recognise, maybe that wasn’t really true,” said Navigant Research analyst Sam Abuelsamid. Last year, Tesla set out to trim its workforce by 9%, or 4,000 jobs.

More cost-cutting followed the company’s difficulty in producing the Model 3, and Musk told employees that expenses were being reviewed after the company lost USD702 million (RM2.942 billion) in Q1 2019. The last quarter saw a 31% drop in sales, with another round of losses predicted for second quarter, although Musk said Tesla will be profitable again by the third quarter.