Electric Vehicle (EV) titan Tesla (NASDAQ:TSLA) continues to be in the news. In a recent development, the company’s CEO, Elon Musk, announced on social media platform X that the company has reduced the monthly subscription fee for its Full Self-Driving (FSD) package from $199 to $99. This shift in pricing strategy marks a departure from Tesla’s previous stance of maintaining and increasing subscription prices.
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Musk had earlier assured that the FSD package price would increase over time. Nevertheless, it seems that the company is now compelled to offer incentives like discounts and free FSD trials in the U.S. due to weaker demand and increased competition.
Notably, in March, Musk implemented a new policy mandating that all new vehicle recipients undergo an FSD demo drive. Additionally, Tesla owners were offered a 30-day trial to experience the latest FSD features.
Tesla Employees Worried About Layoffs
In a separate development, Tesla employees are apprehensive about potential layoffs, with concerns that they could occur as soon as this weekend, Business Insider reported. This isn’t the first time such worries have surfaced. Back in February, Bloomberg reported that Tesla had asked its U.S. managers to evaluate essential positions within the company amidst a slowdown in its volume growth.
Notably, demand headwinds and increased competition are taking a toll on Tesla’s deliveries. The company reported weaker-than-expected Q1 delivery numbers. Further, TSLA stock is down over 31%, underperforming the S&P 500’s (SPX) gain of 7.41%.
Is Tesla a Buy, Sell, or Hold?
Slowing demand and pressure on margins keep analysts sidelined on TSLA stock. It has a Hold consensus rating, reflecting nine Buy, 19 Hold, and seven Sell recommendations. The average Tesla stock price target is $196.72, implying 15.01% upside potential from current levels.
