Tesla shares experienced a 5% decrease on Friday due to the recent lowering of prices on inventory cars in America. Despite this recent development, the stock has still nearly doubled in value over the course of the year. In the past week, news concerning Tesla has been particularly negative with reports of new investigations into the organization by the Securities and Exchange Commission and a Manhattan federal prosecutor. The probes are examining whether the company deliberately deceived customers with its electric vehicle battery range assertions and if resources were wrongly used to benefit CEO Elon Musk's personal interests.
Tesla shares fell 5% on Friday after the electric car manufacturer lowered prices on certain models in the U.S. and dropped the fee for its advanced driver aid software. When the day ended, the stock closed at $245.01. The 100% surge for the year remained intact, however, with a gain of 2.7% for the week.CEO Elon Musk had indicated previously that Full Self-Driving (FSD) software, which is offered as a premium program, would always be priced higher. The U.S. price for upfront purchases dropped by $3,000 to $15,000. Subscribers pay between $99 and $199 monthly dependent on their standard or premium status.Also, Tesla reduced prices for stateside inventory vehicles, including the entry-level Model 3, the luxury Model S and the Model X SUV. The Model S and Model X saw 7% cuts in cost in China.The FSD cost cut follows reports that the National Highway Traffic Safety Administration is near the finish of a years-long examination into potential safety deficiencies of Tesla's driver assistance technologies. This investigation was launched after a slew of accidents involving stationary emergency response vehicles and Tesla drivers thought to be using driver assistance functions.The lower Model X cost makes the SUV eligible for a $7,500 tax break for those buyers who fit the requirements. Meanwhile, some past patrons based in the U.S. and China have expressed their disappointment in the Form of lower resale values and higher insurance prices due to the cost cuts for Model S and X.In addition, the refreshed Model 3 was revealed officially on Friday, featuring the much-debated "stalkless" turn signal. EU and Chinese drivers will need to use a touch button on the steering wheel to signal a lane or turn change, and the left-side stalk is replaced with park, reverse, neutral and drive controls on the touchscreen. The base Model 3 refresh brings a hefty 12% boost in its cost in China as compared to the prior version.Known as the "highland", the Model 3 refresh also boasts a higher-range battery. Tesla China noted that the top-end version can travel up to 713 km (443 miles) with a single charge, while the base option can reach 606 km (377 miles).Other design changes for this variant include a touchscreen for the passengers in the back to regulate comfort and entertainment settings, and a new range of exterior colors.The large starting price has caused Bank of America analysts to state that the effects of introducing the new Model 3 in China should be "manageable" when taking customers' expectations into account. Peers of the Model 3 in China include the XPeng P7, BYD Han and Seal, and Leapmotor C01 electric cars.The analysts also believe that the initial sales numbers for the Model 3 refresh in China might not meet prior projections, but they remain positive for the quarter as consumers have been waiting for the upgrade.Reports of fresh federal investigations by the U.S. Securities and Exchange Commission and a Manhattan federal prosecutor into Tesla, regarding alleged false claims on EV battery range and personal misuse of company resources by Musk also surfaced this week.Concerning the use of company assets, Musk denied accusations on Friday that Tesla had plans for a 'glass house' close to Austin, Texas for his personal benefit.
The Model 3 update features a haptic turn signal button on the "stalkless" steering wheel as well as other controls on the touchscreen.
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