Tesla, an American multinational automotive company, has slashed pricing in a number of its major regions, notably China and Germany, after price cuts in the United States, as it grapples with dropping sales and a growing price war for electric vehicles (EVs), especially versus cheaper Chinese EVs.
TakeAway Points:
- This weekend. Tesla has cut prices in a number of its major markets, including China and Germany, after price cuts in the United States.
- According to the report, the price reductions are a result of Elon Musk’s electric vehicle manufacturer disclosing this month that its global vehicle deliveries dropped in the first quarter for the first time in almost four years.
- Meanwhile, Tesla CEO Elon Musk this weekend postponed his planned trip to India, where he was to meet Prime Minister Narendra Modi on Monday and announce plans to enter the South Asian market.
Tesla Price Reduction
According to Reuters, the price reductions are a result of Elon Musk’s electric vehicle manufacturer disclosing this month that its global vehicle deliveries dropped in the first quarter for the first time in almost four years.
Tesla cut the starting price of the revamped Model 3 in China by 14,000 yuan ($1,930) to 231,900 yuan ($32,000), its official website showed on Sunday.
The manufacturer reduced the cost of its Model 3 rear wheel drive in Germany from 42,990 euros ($43,670.75), the price it has been charging since February, to 40,990 euros ($43,670.75).
According to a Tesla representative, there were price reductions in numerous other nations in Europe, the Middle East, and Africa.
On Friday, the automaker slashed the price of its Model Y, Model X, and Model S cars in the United States by $2,000. It reduced the cost of its Full Self-Driving Driver Assistance Software to $8,000 on Saturday from $12,000 in the US.
Due to high borrowing rates that have reduced consumer demand for expensive goods, the EV manufacturer has been sluggish to update its ageing models as competitors in China, the largest auto market in the world, are releasing more affordable versions.
Tesla’s CEO Cancels India Trip
Tesla chief Elon Musk this weekend postponed his planned trip to India, where he was to meet Prime Minister Narendra Modi on Monday and announce plans to enter the South Asian market.
On Musk’s visit, PM Modi said, “I want investment to come to India because in India, it doesn’t matter who has invested money; the sweat put into the work must be of our own people. The product should have the essence of our soil, so that our youth in the country will get employment opportunities.”
In a post on X, the CEO said, “Unfortunately, very heavy Tesla obligations require that the visit to India be delayed, but I do very much look forward to visiting later this year.”
Musk revealed his impending trip to India a few weeks after the Indian government unveiled a new policy aimed at promoting electric vehicles and granting import duty breaks to newly established businesses.
Meanwhile, Musk announced last Monday that Tesla is preparing for its first annual decline in deliveries and will be laying off over 10% of its global staff.
The report further states that Tesla shares have fallen by 40.8% so far this year.
