Tesla, led by multi-billionaire Elon Musk, has once again reduced prices in key markets like the US, China, and Germany as it grapples with declining sales.
The decision follows a significant drop in global vehicle deliveries during the first quarter of this year, indicating mounting pressure on the electric car industry leader.
Amidst a burgeoning price war among electric vehicle manufacturers, particularly fierce competition from Chinese companies, Tesla gears up to unveil its financial results for Q1 2024 after the US market close on Tuesday.
Elon Musk, in a social media post on X (formerly Twitter), emphasized the necessity of frequent price adjustments to align production with demand.
In China, Tesla slashed the starting price of the revamped Model 3 by 14,000 yuan to 231,900 yuan, while in the US, prices of Model Y, Model X, and Model S vehicles were reduced by $2,000 on Friday.
Similar price cuts were implemented across Europe, the Middle East, and Africa, according to Reuters.
As Tesla initiated an electric vehicle price war over a year ago, sacrificing profit margins, it faces challenges in refreshing its aging models, unlike its Chinese counterparts like BYD and Nio, which are introducing more affordable models.
The company recently announced workforce layoffs exceeding 10% globally and delayed Elon Musk’s planned trip to India due to pressing Tesla commitments.
Additionally, Tesla recalled thousands of Cybertrucks due to safety concerns related to accelerator pedals, contributing to a more than 40% decline in its shares since the beginning of this year.
