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Tesla Slashes Prices in China, Germany, and Global Markets Following US Cuts
Tesla reduces prices in China and Germany, following US cuts. Price cuts come after Tesla reports decline in global vehicle deliveries. Tesla engages in intense price war for EVs, particularly against Chinese manufacturers.
In response to declining sales and increasing competition in the electric vehicle (EV) market, Tesla has announced price cuts in several key markets, including China and Germany. This move comes after the company recently reported a drop in global vehicle deliveries for the first time in nearly four years.
According to Tesla CEO Elon Musk, the frequent changes in prices are necessary to align production with demand. The company has been engaged in an intense price war, particularly against Chinese EV manufacturers, which has put pressure on profit margins.
In China, Tesla has reduced the starting price of the revamped Model 3 by 14,000 yuan ($1,930) to 231,900 yuan ($32,000). Similarly, in Germany, the price of the Model 3 rear-wheel-drive variant has been lowered to 40,990 euros ($43,670.75) from 42,990 euros.
These price cuts are not limited to China and Germany alone. Tesla has also implemented reductions in various other countries across Europe, the Middle East, and Africa, as confirmed by a company spokesperson.
In addition to the price cuts on vehicles, Tesla has also made adjustments to its software pricing. The Full Self-Driving driver assistant software, previously priced at $12,000, has been slashed to $8,000 in the United States.
Tesla's decision to lower prices comes at a time when the company is facing challenges in refreshing its aging models. High interest rates have dampened consumer interest in big-ticket purchases, while competitors in China are introducing more affordable EV models.
Meanwhile, Tesla CEO Elon Musk recently postponed his planned trip to India, where he was scheduled to meet with Prime Minister Narendra Modi. The trip was expected to include the announcement of Tesla's entry into the South Asian market. Musk cited obligations at Tesla as the reason for the delay.
In a separate development, Tesla announced that it will be laying off more than 10% of its global workforce as the company prepares for a decline in annual deliveries. This decision follows reports that Tesla has abandoned plans to develop an affordable EV in favor of focusing on robotaxis. Musk has denied the accuracy of these reports but has not provided further details on the matter.
Tesla's stock has experienced a significant decline of 40.8% since the beginning of the year, reflecting the challenges the company is currently facing in the market.
Tesla reduces prices in China and Germany, following US cuts
Price cuts come after Tesla reports decline in global vehicle deliveries
Tesla engages in intense price war for EVs, particularly against Chinese manufacturers
Source: REUTERS