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Domitille Parent on how Kipling is winning back hearts in the region

The brand that sells 23 bags every minute is doubling down on physical retail, playful design and products built to last

Neesha Salian
Neesha Salian

21 February, 2026

Domitille Parent on how Kipling is winning back hearts in the region
Image: Supplied

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Article Summary
Kipling relaunched its Dubai Mall flagship store, emphasizing joyful experiences with a giant plush monkey mascot. The brand aims to reconnect emotionally with customers after focusing on digital expansion. This includes a focus on durability and customer experience. The Middle East, managed by partner Jashanmal Group, is a key growth market for Kipling.

There is a giant plush monkey in the middle of the Dubai Mall. It is roughly the size of a small child, and it is attracting a steady stream of shoppers who want to cuddle it, photograph it, and post it to their feeds. The monkey is not for sale. It is not, strictly speaking, a product at all. It is a mascot — and a statement of intent.

The creature belongs to Kipling, the Belgian accessories brand that has just refreshed its flagship store in one of the world’s busiest shopping destinations. “The Dubai Mall flagship store is the true expression of what Kipling is: colourful, joyful, and as fun as our icon — the furry ‘Monkey’,” says Domitille Parent, VP Global Brand Management. “This store is a destination; it draws you in. You want to enter and take part in the experience, cuddle the monkey, take selfies… and of course check out our new bag collection!”

The emotional connection

Kipling’s reinvention is not merely cosmetic. It is, by the brand’s own admission, an attempt to recapture something it had lost. “I’m being really transparent with you,” Parent says. “In the past years, Kipling became a little static, a bit soft. So, this is something we have been working on re-establishing, like bringing a smile to people’s faces when they see a Kipling ad or when they see a Kipling product. This is super important.”

The diagnosis is bracingly honest for a brand that sells 23 bags every minute somewhere in the world, and whose products are owned by more than 35 million people globally. But the honesty reflects a broader reckoning in the accessories market. After years of digital-first expansion, brands are rediscovering that physical retail is not merely a distribution channel; it is an emotional theatre.

“In the past years, we also went really digital,” Parent explains. “We opened all the digital channels, which are great because for bags products, digital is easy, you don’t really need to try the product on. But what we realised was that people were missing the retail environment. When you’re not visible in the retail environment, you’re not top of mind. People want to go back into retail. They want to touch the product. They want to experience.”

The monkey, in this context, is more than a mascot. It is an emotional anchor. “We want to connect with it,” Parent says.

A partnership built on trust

The Dubai flagship exists because of a relationship that has quietly endured for a quarter of a century. Kipling’s regional partner is the Jashanmal Group, one of the Gulf’s most established retail houses, founded in 1919 and now operating over 150 stores across the UAE, Kuwait, Bahrain, Oman, and India.

The two have worked together for 25 years — more than half of Kipling’s 40-year existence. Jashanmal operates 10 Kipling stores across the Middle East.

“The reopening of Kipling’s flagship store in Dubai Mall marks a proud moment for us and reflects our long-standing partnership built on trust, shared values, and a passion for delivering exceptional retail experiences,” says Shuja Jashanmal, CEO of Jashanmal Group. “This refreshed flagship beautifully captures the brand’s playful DNA while elevating the in-store journey. Kipling has always stood for creativity, colour, and joyful self-expression, and this reopening brings that spirit vividly to life.”

Parent is effusive about what the partnership has meant. “What’s great is that they are really great partners because they tag along with the brand message and the brand vision. They are really aligned. But what they do is they implement it in a really, really great way. It’s not only because they’re investing in the brand, which is always important. But they’ve been doing such a great job that the brand has always been so relevant in the Middle East.”

The investment goes beyond capital. “They do activation — when we had our collaboration with the Minions, they had Minions running around the mall. They are really investing financially, for sure, but also investing their time, their creativity within the brand, which is vital to keep the brand momentum and desire.”

The Middle East is now one of Kipling’s fastest-growing markets globally. The next regional refurbishment will be the Festival City store.

Why the monkey matters

Kipling’s origin story has a literary charm that the brand has never outgrown. In 1987, three entrepreneurs — Xavier Kegels, Paul Van De Velde, and Vincent Haverbeke — founded the company in a small flat in Antwerp, Belgium. They named it after Rudyard Kipling, the British author of The Jungle Book, whose tales of Mowgli and his animal companions captured a spirit of adventure and playfulness they wanted their brand to embody.

The monkey came almost immediately. “The brand was founded in 1987, so almost 40 years ago, and the monkey was already there,” Parent explains. “When the brand was founded, the name was chosen — Kipling, which is linked to the writer of The Jungle Book. And then the founders were like, it would be nice to have a small icon. So first they had the monkey in the logo with a really big tail, and then they had the small monkey on the bags, which we’ve kept forever.”

“What’s really funny is that they thought people would attach it to their keys or something, but actually, people leave it on their bags. It’s really a success story. And it’s so deep that some people, they call it the “monkey” brand. If you say, ‘I work for Kipling,’ they say, ‘Yes, you know, the monkey.’ It’s really linked to the brand. It’s part of the DNA.”

Each season introduces new monkey designs, and each is named after a Kipling employee somewhere in the world. It is a small gesture of internal community that has turned the keychain into a collector’s item.

The brand’s other signature — its distinctive crinkled nylon fabric, lightweight, water-resistant, and almost indestructible — was a happy accident. The founders had set out to make colourful, functional bags that broke with the monotony of conventional luggage. The crinkled texture came from a production quirk that they decided to embrace rather than correct. The brand adopted a fitting motto: Fashion is too important to take seriously.

Durability over trends

One of Kipling’s quiet selling points has always been longevity. The bags are built to last — and to be passed on. Parent is candid about the tension this creates with the sustainability discourse.

“We belong to a big group called VF Corporation, which has super high standards when it comes to production. We use bluesign fabric facilities. We are really working on non-waste — when we are using something on a product, we do not want to waste, we do not want to use things which are useless. That’s the first mindset.”

“The second mindset is really the durability of the product. We’ve been looking, transparently, at recycled material, or coconut leather, or these kinds of things, but the products were not as resistant. And for us, what’s most important is that when you buy a product, you know the product will be there for a long time. You can even put it in a washing machine if you want. You can give it to your sister. This is for us the key message: when we do a product, of course, it has an ecological footprint, but we want to make sure that we erase it within the years because you will have it for so long.”

What works here

Kipling maintains a global product range, but regional partners curate locally. “In terms of products, we have a global offer, but the offer is quite wide, so it enables the region to go more for their specificity,” Parent says. “We will have many colours, but maybe the Middle East will say, ‘No, we don’t want the yellow.’ That’s fine — they can really curate their assortment.”

Two categories perform particularly well in the region. The first is back-to-school: children’s backpacks, trolleys, lunch bags, and pencil cases in seasonal prints and colours that can be purchased as coordinated sets. “Every season we come with new prints, new colours, but you can also buy the full assortment,” Parent notes. The second is travel — a category that surprises some customers who associate Kipling primarily with everyday bags. “People don’t always think that Kipling has travel, but we do. The bags on wheels are doing really well in the Middle East.”

Reaching the next generation

Kipling’s challenge is generational. It has an intensely loyal customer base, but that base is getting older. The brand must find a way to stay relevant without abandoning its identity.

Parent says. “What’s important for us is that we stay relevant for the next generation. But as Kipling, we do not want to go for the young, young hipster. We want to grow with our consumers. We want to go with the adjacent category, the active woman, who is busy and has a family. We see that our population is getting older, but we can go back one step and regain. It’s not only about the age, but also more like somebody who is vibrant and active. She knows that Kipling has everything she needs to go to work, to pick up the kids.”

In an era when retail is often discussed in terms of logistics, conversion rates, and omnichannel integration, there is something refreshingly simple about Kipling’s bet: that a giant plush monkey can make people smile, that a durable bag can be passed from mother to daughter, and that a quarter-century partnership built on trust can still be the foundation of something new. It is not a complicated thesis. But then, Kipling has never believed that fashion should be taken too seriously.

AIX Investment Group’s playbook for markets in 2026

Global growth has stabilised and inflation has cooled, but markets are no longer forgiving. As technology rallies narrow and policy paths diverge, AIX Investment Group is repositioning portfolios for resilience, selectivity and long-term value

Gareth van Zyl
Gareth van Zyl

20 February, 2026

AIX Investment Group’s playbook for markets in 2026

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Global markets in 2025 showed growth driven by technology and AI, but with concentrated returns. The IMF forecasts moderate global growth for 2026. Central banks are cautious, and fixed income is strategically relevant again. AIX Investment Group emphasizes durability, selective fixed income, and navigating geopolitical risks. They focus on opportunities outside the US and managing inflation.

Global markets ended 2025 stronger, but far less forgiving.

Growth returned, equity indices pushed higher and inflation cooled. Yet the rally exposed a market increasingly dependent on a narrow set of technology and artificial intelligence (AI) leaders.

Investors now face a tougher question: will recent gains reflect durable fundamentals or a new phase of concentration risk?

The International Monetary Fund (IMF) expects the global economy to expand by around 3.3 per cent in 2026, a pace that signals stability rather than acceleration. Technology investment, particularly in AI, continues to underpin that growth, helping offset slower momentum in advanced economies. Policymakers, however, are no longer providing uniform support. Central banks have shifted toward caution, weighing selective rate cuts against lingering inflation pressures and uneven labour markets.

Equity markets reflected that imbalance. In 2025, the so-called “Magnificent Seven” technology stocks (Alphabet, Amazon, Apple, Tesla, Meta Platforms, Microsoft, and Nvidia) accounted for well over half of the S&P 500’s total gains, according to market estimates, reinforcing concerns that returns are becoming increasingly concentrated. By contrast, large parts of the market delivered more modest performance. The MSCI All Country World Index rose solidly over the year, but US equities continued to dominate returns, underscoring the growing divergence between headline indices and underlying breadth.

Bond markets, meanwhile, have reclaimed strategic relevance. After years in the shadows, fixed income once again offers income, diversification and downside protection as yields reset higher. The result is a market environment that rewards selectivity rather than passive exposure.

The UAE enters this cycle from a position of relative strength. Forecasts from multilateral institutions point to around 5 per cent real GDP growth in 2026, driven by non-oil expansion, investment inflows and continued economic diversification. That pace places the country well ahead of many advanced economies and reinforces its role as a regional hub for capital and asset allocation.

This combination of moderate global growth, cooling but uncertain inflation along with increasingly selective market leadership is forcing investors to rethink long-standing playbooks. For AIX Investment Group, the focus has shifted away from momentum and toward durability: constructing portfolios designed to absorb volatility while capturing long-term opportunity.

“As we move into 2026, the global rate environment is no longer binary,” says Fadi Dabbagh, president of the board at AIX Investment Group. “We are seeing selective easing in some developed markets, continued caution in others, and structurally higherfor-longer dynamics in certain regions. At AIX Investment Group, this complexity creates opportunity rather than constraint.”

Fadi Dabbagh, president of the board at AIX Investment Group

Fixed income makes a comeback

For much of the past decade, ultra-low yields pushed fixed income into a defensive corner of multi-asset portfolios. That dynamic has changed. Higher yields across developed and emerging markets have restored bonds as a core strategic asset, capable of delivering income, diversification and capital preservation.

“Our fixed income strategy is increasingly granular and selective,” Dabbagh explains. “It focuses on active duration management, curve positioning, and high-quality yield capture. Structured fixed income instruments offer attractive risk-adjusted returns without excessive exposure to rate volatility.”

That selectivity matters in a world where rate expectations diverge sharply by geography. While parts of the developed world prepare for cautious easing, others remain in a higher-forlonger posture, forcing investors to manage duration and credit risk more precisely.

“Importantly, we are not chasing yield blindly,” says Dabbagh. “The emphasis is on capital preservation, liquidity, and resilience, while positioning portfolios to benefit as rate cuts eventually feed through to bond prices.”

The shift reflects a broader recalibration among investors. After years of equity-led returns driven by a narrow leadership group, many are reassessing the role of predictable income and balancesheet strength.

“In many ways, fixed income has reasserted itself as a strategic pillar of long-term wealth creation and we see 2026 as a year where disciplined bond investing is rewarded,” he adds.

Learning to live with geopolitics, AI

Geopolitical risk no longer arrives as a surprise. Trade realignment, sanctions regimes and energy security concerns now shape market behaviour on a continuous basis. Rather than attempting to forecast political outcomes, AIX Investment Group focuses on constructing portfolios that can function across regimes.

“Geopolitical risk is now a permanent feature of the investment landscape, not an episodic shock,” says Dabbagh. “At AIX Investment Group, we do not attempt to predict geopolitical events; instead, we build portfolios that can withstand and adapt to them.”

That philosophy translates into diversified exposure across regions, currencies and economic systems, supported by ample liquidity buffers and disciplined position sizing.

“Our goal is not to become overly defensive, but to remain flexible so that portfolios can absorb shocks while still capturing long-term opportunities,” he says. “In today’s world, resilience is not about avoiding risk altogether, but about managing it intelligently.”

Furthermore, AI continues to dominate market narratives, but AIX Investment Group argues its influence extends well beyond equity valuations and earnings growth. Productivity gains, cost structures and competitive positioning increasingly affect credit quality and long-term growth assumptions.

“Technology and AI in particular is no longer just an equity story,” says Dabbagh. “It is increasingly influencing productivity, corporate margins, credit quality and longterm growth expectations, all of which feed directly into fixed income markets.”

Those dynamics now inform AIX Investment Group’s issuer selection, credit analysis and duration decisions. The firm also monitors how AI-driven productivity gains may influence long-term inflation expectations and yield curves.

“We are also attentive to how technological productivity gains may influence long-term inflation expectations and yield curves, potentially supporting a more favourable backdrop for longerduration assets over time,” he explains. “In this sense, technology is quietly becoming one of the key macro drivers of fixed income performance.”

Looking beyond the US, sticky inflation

The US remains a dominant engine of innovation and capital formation, but its equity market has become increasingly concentrated. US stocks now account for roughly 70 per cent of the MSCI All Country World Index’s market capitalisation, leaving global portfolios heavily exposed to a single economy and sector.

AIX Investment Group’s strategy therefore places growing emphasis on selective opportunities outside the US, particularly where structural growth drivers are supported by improving institutional frameworks.

“In 2026, we see particularly compelling opportunities in select emerging markets, parts of the Middle East, Asia, and certain European economies outside the US core,” says Dabbagh. “These regions benefit from favourable demographics, infrastructure investment, fiscal discipline and, in some cases, reduced correlation with US-centric cycles.”

The objective, however, is not to chase short-term performance.

“The goal is not to maximise returns in any single year, but to compound wealth steadily while protecting capital across cycles,” he emphasises.

Meanwhile, inflation has retreated from recent highs, but AIX Investment Group remains cautious about declaring victory. Energy transition costs, supply-chain reconfiguration and geopolitical disruption continue to inject uncertainty into price dynamics.

“While headline inflation has eased, we believe structural inflation volatility will persist due to energy transition costs, supply-chain reconfiguration and geopolitical factors,” says Dabbagh.

As a result, the firm avoids extreme duration or credit positioning, favouring balanced exposure and flexibility.

“We avoid extreme positioning in either direction,” he says. “Ultimately, portfolio resilience in 2026 is about adaptability. Investors must be prepared for inflation to move in both directions, and portfolios should be structured to perform across that wide range of outcomes.”

Impact and the long view

Alongside its investment strategy, AIX Investment Group continues to expand its global profile. In April last year, the group announced its official sponsorship of Formula 1 driver Pierre Gasly for the 2025 season, placing the AIX Investment Group logo on the side panel of Gasly’s helmet throughout the Formula 1 World Championship.

Gasly, currently racing for the BWT Alpine F1 Team, is known for his ability to perform under pressure.

“From his early days in karting to his Grand Prix victory at Monza, Gasly has consistently demonstrated the skill, determination, and ambition that defines a Formula 1 competitor. As a key figure on the grid, his journey continues to inspire fans and set a benchmark for excellence in motorsport,” AIX Investment Group said in a statement.

“This partnership represents a step forward in our motorsport journey, from supporting young talent through our Formula 2 and Formula 3 teams, AIX Racing, to now having a presence in Formula 1,” says Morne Reinecke, director at AIX Investment Group. “It’s a key milestone and a meaningful step toward continued growth.”

Morne Reinecke, director at AIX Investment Group (pictured left) with Formula 1 driver Pierre Gasly (right).

Brand visibility sits alongside AIX Investment Group’s longer-term focus on impact and responsibility through its ‘We Are The Future’ initiative, a structured social responsibility framework integrated with the group’s broader strategy.

“At its core, ‘We Are The Future’ is our commitment to giving back to the community and to key segments of society through a structured, long-term social responsibility agenda,” says Reinecke.

Rather than one-off initiatives, the programme prioritises continuity and measurable outcomes across education, health, youth development and sport.

“We see our social investments as an extension of our core philosophy as an investment group: to build compounding value over time,” he says. “Just as we construct portfolios for resilience and long-term performance, we construct our community initiatives to be sustainable, scalable and aligned with the future we want our clients, partners and their families to inherit.”

Looking beyond 2026, AIX Investment Group plans to deepen its use of data, analytics and AI-enabled tools while maintaining a strong role for human judgement.

“Our philosophy is that technology should augment, not replace, human judgement,” Reinecke notes. “Our edge lies in combining modern AI and quantitative techniques with experienced portfolio managers, strong research capabilities and traditional trading principles.”

As markets adjust to a post-easy-money era, AIX Investment Group’s strategy reflects a simple premise: returns still exist, but they must be earned through selectivity, discipline and resilience — not assumption.

Kaspersky deepens Saudi footprint with university partnership

The collaboration is designed to enhance cybersecurity competencies across the university community by supporting talent development and encouraging knowledge exchange

Rajiv Pillai
Rajiv Pillai

20 February, 2026

Kaspersky deepens Saudi footprint with university partnership

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Kaspersky and Qassim University are partnering to bolster cybersecurity education through joint initiatives. The agreement provides Qassim University with Kaspersky's resources, software, and expertise to enhance academic programs and training. The collaboration aims to develop cybersecurity talent, raise awareness, and align curriculum with industry needs, strengthening professional engagement and contributing to Saudi Arabia's cybersecurity capacity.

Kaspersky has entered into a cooperation agreement with Qassim University to strengthen cybersecurity education and professional training for students and faculty members.

The partnership will focus on the joint development and implementation of educational and scientific initiatives aimed at advancing both foundational and professional cybersecurity education. Under the agreement, Qassim University will have access to Kaspersky’s educational materials, information resources and selected software products for use within its academic programmes and training activities.

The collaboration is designed to enhance cybersecurity competencies across the university community by supporting talent development and encouraging knowledge exchange. This will include specialised programmes, workshops and professional training initiatives aligned with the evolving needs of the cybersecurity job market.

Areas of cooperation include raising cybersecurity awareness among students and staff, supporting talented individuals in the study of technologies and software, developing specialised course materials for integration into academic curricula, and delivering advanced training programmes. The agreement also seeks to strengthen professional engagement among faculty members and industry specialists in the field.

Mohamad Hashem, general manager at Kaspersky in Saudi Arabia and Bahrain, said: “Building strong cybersecurity capabilities begins with education, and through our collaboration with Qassim University, we aim to support the development of practical skills and knowledge that contribute to preparing students and teachers to face the evolving challenges in the field of cybersecurity. This agreement reflects our long-term commitment to knowledge sharing and capacity building in the Kingdom.”

Read: Kaspersky partners with UAE fintech firm Codebase to boost digital banking security

Amazon’s cloud was hit by two outages involving AI tools in December

An Amazon Web Services spokesperson told Reuters in an emailed response that the disruption was brief and attributed it to user error

Reuters
Reuters

20 February, 2026

Amazon’s cloud was hit by two outages involving AI tools in December
Image credit: Supplied

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Amazon Web Services experienced outages in December, reportedly linked to its Kiro AI coding tool. The Financial Times cited sources claiming Kiro autonomously "deleted and recreated the environment," causing a 13-hour interruption. Amazon disputes this, attributing the disruption to "user error" and "misconfigured access controls", affecting a limited service in China. A separate major outage occurred in October, causing wider...

Amazon’s cloud unit suffered at least two outages in December stemming from errors involving its own AI tools, the Financial Times reported on Friday, citing people familiar with the matter.

In mid-December, Amazon Web Services experienced a 13-hour interruption to a system used by customers when engineers allowed its Kiro AI coding tool to carry out certain changes, the report said.

According to the FT report, the agentic tool, which is capable of taking autonomous actions for users, decided to “delete and recreate the environment.”

Read more-Ultra-fast ‘Amazon Now’ delivery service launches across UAE

An Amazon Web Services spokesperson told Reuters in an emailed response that the disruption was brief and attributed it to user error.

“This brief event was the result of user error-specifically misconfigured access controls, not AI,” the spokesperson said.

The service interruption was an “extremely limited event” when a single service in one of the two regions in mainland China was affected, the spokesperson said, adding that it did not impact compute, storage, database, AI technologies, or any other of AWS’s services.

In October, a major outage in Amazon’s cloud service had caused a global disruption, affecting Amazon’s own services and apps such as Reddit, Roblox, and Snapchat.

Aston Martin to sell F1 branding rights as it warns of bigger loss

Aston Martin has been trying to shore up capital throughout the year, including a $162m injection from Chairman Lawrence Stroll

Reuters
Reuters

20 February, 2026

Aston Martin to sell F1 branding rights as it warns of bigger loss
Image credit: Aston Martin/Website

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Aston Martin is selling its F1 team naming rights for $67.29M to improve finances amid weak demand and tariff pressures, expecting a larger-than-expected annual loss. Share prices fell. The deal, requiring shareholder approval due to its connection to Chairman Stroll, comes after earlier capital-raising efforts. Aston Martin anticipates improved performance by 2026, driven by hypercar deliveries and cost reductions.

Aston Martin is to sell the right to use its name on the Aston Martin F1 Team for $67.29m to bolster its finances after a challenging year.

The British luxury carmaker, facing tariff pressures and weak demand in North America and China, also warned on Friday of a bigger annual loss than the market expected, hitting its shares which fell more than 4 per cent.

Read more-Tesla unveils cheaper Cybertruck variant, cuts Cyberbeast price

The company said the perpetual naming rights deal with AMR GP Holdings, which operates its Formula One racing team, would “enhance the group’s liquidity position”.

Aston Martin has been trying to shore up capital throughout the year, including a $162m injection from Chairman Lawrence Stroll and a deal to sell its stake in his F1 team in March.

Known as the car driven by James Bond, the carmaker cut back its spending on developing new vehicles in October, citing “extremely subdued” Chinese demand and broader sector pressures in the UK.

Aston Martin shares were down 4.4 per cent at 57 pence by 0842 GMT.

The F1 branding rights deal will require shareholder approval as a related‑party transaction involving Stroll, who indirectly controls AMR GP.

Shareholders representing 54 per cent of the company, including Stroll’s Yew Tree Consortium, Geely and Mercedes-Benz, have given binding commitments to vote in favor of the naming rights sale.

Ahead of its scheduled annual results on February 25, Aston Martin on Friday said it delivered nearly 10 per cent fewer cars this year, hurt by fewer high-margin special deliveries in the year.

The company expects an adjusted operating loss slightly below the lower end of market consensus of a loss between £139 pounds and £184m ($187.07-$247.35m), according to company-compiled consensus.

Aston Martin said it continues to expect material improvement in 2026 driven by around 500 deliveries of its Valhalla hypercar model and ongoing cost-cutting measures.

Tesla unveils cheaper Cybertruck variant, cuts Cyberbeast price

Tesla priced the new dual-motor all-wheel-drive model at $59,990, making it the company’s “most affordable” Cybertruck yet

Reuters
Reuters

20 February, 2026

Tesla unveils cheaper Cybertruck variant, cuts Cyberbeast price
Image credit: Tesla/Website

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Tesla introduced a cheaper Cybertruck model at $59,990 and reduced the Cyberbeast price to $99,990, discontinuing its "Luxe Package". This move is part of Tesla's strategy to attract more buyers amid slowing EV demand and increased competition. Tesla is also discontinuing production of Model X and S to focus on humanoid robots.

Tesla unveiled a cheaper Cybertruck variant in the US on Thursday and slashed the price of its most-expensive model, Cyberbeast, as the electric-vehicle maker struggles to find buyers for its pickup trucks.

Tesla priced the new dual-motor all-wheel-drive model at $59,990, making it the company’s “most affordable” Cybertruck yet, and lowered the Cyberbeast price to $99,990 from $114,990.

With the price cut, Tesla looks to be discontinuing its “Luxe Package” for the model that included Supervised Full Self-Driving and free access to its Supercharger network.

Read more-Tesla begins selling Cybertrucks in Qatar

Tesla had added the package to its lineup last August when it raised the price of the pickup truck.

Earlier this month, Tesla introduced a new all-wheel-drive variant of its bestselling Model Y SUV, priced at $41,990, sitting above the cheaper rear-wheel-drive “Standard” version.

Demand slump

Price cuts have become a key part of Tesla’s 2026 strategy, lowering entry prices to attract more cost-conscious buyers without waiting for a new mass-market vehicle.

The broader EV market has slowed since September, when the Trump administration ended the $7,500 federal tax credits. Tesla is also facing intensifying global competition.

Analysts have warned that a greater share of lower-priced vehicles could keep pressure on margins unless Tesla can offset the impact through reduced manufacturing costs or stronger revenue from software and services.

Tesla CEO Elon Musk said last month that the company would end production of its Model X SUV and Model S sedans and instead use the space in its California factory to make humanoid robots.

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