Tesla Cuts Model 3 Lease Cost Amid Declining Sales

Tesla has experienced a challenging start to 2025, with car sales dropping 13% year-over-year in the first quarter and a significant decline in its stock price, which has also impacted Elon Musk's net worth. In response, Tesla has introduced more affordable lease options for the Model 3 in the U.S., offering monthly payments as low as $349 with zero down payment, in hopes of reviving sales momentum. Additionally, the company confirmed that production of its long-anticipated, more affordable vehicle remains on schedule to begin in the first half of 2025, likely around June, though the production ramp is expected to be slower due to global tariffs and financial challenges. Tesla plans to use existing Model 3 and Model Y manufacturing lines for this new vehicle, enabling a quicker market launch and more efficient use of resources, though with fewer cost reductions than if a new platform had been used. Amid these efforts, Tesla is also preparing for its entry into the Indian market, signaling continued global expansion despite domestic setbacks. These steps underscore Tesla's strategy to address declining demand and maintain competitiveness in the evolving electric vehicle market.