Tesla shares slide to 15-month low ahead of earnings, as Wall Street frets over price cuts, layoffs

Tesla shares fell for a seventh straight day, reaching their lowest since January 2023, as further price cuts over the weekend added to mounting concerns heading into the company's first-quarter earnings report Tuesday.

The stock dropped 3.4% on Monday to close at $142.05, bringing its decline for the year to 43%, second worst among members of the S&P 500.

Tesla cut prices in the U.S., China and throughout Europe, with reductions of as much as $2,000 on the company's most popular electric vehicles, the Model Y SUV and entry-level Model 3 sedan. Tesla also lowered the price of its premium driver assistance system by one-third. The system is marketed as the Full Self-Driving, or FSD, option, though it requires a human driver at the wheel, ready to steer or brake at any time.

The FSD option, which previously cost $12,000 up front or $199 per month on a subscription basis for most customers in the U.S., is now listed on Tesla's website at $8,000 upfront and $99 for a monthly subscription. The price cut follows a monthlong free trial that Tesla pushed out to customers throughout North America starting in late March.

The latest reductions add to investors' growing fears following weak first-quarter deliveries, layoffs and a Cybertruck recall.

Last week, Tesla issued a voluntary recall on 3,878 Cybertruck vehicles to repair a serious "trapped pedal" defect seen in a viral TikTok video from a Cybertruck owner.

According to a filing with the National Highway Traffic Safety Administration, a pad on top of the Cybertruck's accelerator pedal could come loose and get trapped in the interior trim causing "unintended acceleration."

Prior to the recall notice and price cuts, Tesla had initiated a steep and messy restructuring, informing