Tesla has slashed prices on the Model 7 after a quarter that saw a significant drop in sales for the EV maker.

According to CNBC, Tesla’s sales were down 8.5% in the most recent quarter, leaving the company with a surplus of at least 40,000 more vehicles. The company appears to be taking efforts to cut its inventory, slashing prices by thousands on the Model Y.

The company’s website is listing the Model & as low as $37,790 or the rear-wheel drive model, a drop from $44,990.

The all-wheel drive models have been dropped by roughly $5,000.

Tesla has been facing additional challenges, many of them related to CEO Elon Musk. The company’s “consideration score,” which measures the interest of potential buyers, has dropped to just 31% from its peak of 70% in 2021.

The company continues to be the dominant EV automaker, but Ford is investing—and losing—billions to catch up and is currently the number two EV maker in the US.

Only time will tell if Tesla stem its mounting issues, but it will take the company—and its CEO—to return to the laser focus it once had if it wants to hold off its rivals and continue pushing the EV industry forward.