Tesla, the electric vehicle giant led by billionaire Elon Musk, has slashed $2,000 off the prices of three of its five models in the United States. This move is seen as a response to the challenges the company is currently facing, including falling sales and increased competition.

The price cuts affect the Model Y, a small SUV which is Tesla’s most popular model and the top-selling electric vehicle in the U.S., as well as the Models X and S, which are older and more expensive, 2,990, while the Models X and S, are priced at $72,990 and $77,990 models.

This decision comes on the heels of Tesla’s stock tumbling below $150 per share, erasing all gains made over the past year. The company’s stock price has dropped about 40% so far this year. Discounted sticker prices are seen as a strategy to entice more car buyers.

In addition to the price cuts, Tesla also announced a global staff cut of 10%, amounting to about 14,000 jobs. The company is also recalling nearly 4,000 of its 2024 Cybertrucks due to a fault in the accelerator pedal.

Tesla is scheduled to announce its first-quarter earnings on Tuesday. The company reported earlier this month that its worldwide sales fell sharply from January through March. This is Tesla’s first year-over-year quarterly sales decline in nearly four years.