Tesla has once again slashed its prices in several key markets, including the US, China, and Germany, amid declining sales for the electric car giant led by billionaire Elon Musk.
This decision follows a significant drop in global vehicle deliveries during the first quarter of this year.
A fierce price war has escalated among electric vehicle (EV) manufacturers, with strong competition emerging from Chinese companies in particular. Tesla is set to announce its financial results for the first quarter of 2024 after the close of the US market on Tuesday.
Elon Musk, in a post on the social media platform X (formerly Twitter), emphasized the necessity for Tesla to frequently adjust prices to align production with demand.
In China, the company reduced the starting price of the revamped Model 3 by 14,000 yuan (£1,562) to 231,900 yuan. Meanwhile, prices for the Model Y, Model X, and Model S vehicles in the US were cut by $2,000 (£1,616) on Friday.
According to Reuters, there were also price reductions in numerous other countries across Europe, the Middle East, and Africa.
BBC News has reached out to Tesla for comment. The company ignited an EV price war over a year ago by aggressively lowering prices at the expense of profit margins.
While rivals in China, such as BYD and Nio, have been introducing more affordable models, Tesla has been slow to refresh its aging lineup. Additionally, Chinese smartphone maker Xiaomi recently entered the EV market with its first electric vehicle launch last month.
Last week, Tesla announced intentions to reduce its global workforce by over 10%. Over the weekend, Elon Musk postponed a planned trip to India, where he was scheduled to meet Prime Minister Narendra Modi, citing “very heavy Tesla obligations.”
On Friday, the company issued a recall for thousands of its new Cybertrucks due to safety concerns. This recall was prompted by the risk of accelerator pedals becoming trapped by the interior trim, increasing the potential for accidents.
Since the beginning of the year, Tesla’s shares have plummeted by over 40%.
