Elon Musk’s Tesla has once again slashed prices in key markets like the US, China, and Germany in response to declining sales. This price adjustment extends to other regions in Europe, the Middle East, and Africa.
The company experienced a significant drop in vehicle deliveries during the first quarter of this year.
This move is occurring amidst a burgeoning price competition among electric vehicle manufacturers, particularly with strong competition from Chinese automakers.
Tesla is scheduled to release its first-quarter financial report shortly after the US market closes on Tuesday.
Elon Musk acknowledged the price adjustments on his platform, X, stating
that “Tesla prices need to adjust frequently to align production with demand.”
In China, prices for the redesigned Model 3 were reduced by 14,000 yuan, while in the US, the prices of Model Y, X, and S vehicles were lowered by approximately $2,000 last Friday.
On the same day, Tesla issued a recall for thousands of its new Cybertrucks due to safety concerns. There were worries about accelerator pedals becoming trapped by interior trim, increasing the risk of accidents.
Following a challenging week, Elon Musk announced the postponement of his planned meeting with Indian Prime Minister Narendra Modi in New Delhi, citing “heavy Tesla obligations.”
During the same period, the EV manufacturer disclosed intentions to lay off over 10% of its global workforce.
Tesla initially triggered a price war over a year ago when it significantly reduced prices, prioritizing market share over immediate profits.
It is now facing robust competition from multiple Chinese firms, including newcomer Xiaomi.
