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Tesla has made price cuts in several key markets, including China and Germany, in response to declining demand for electric vehicles and price competition with Chinese manufacturers. The price cuts came after Tesla reported a drop in sales for the first quarter, the first time in four years.
According to Elon Musk, Tesla’s pricing should be flexible to adjust to changes in production and demand. The company started aggressively cutting prices more than a year ago, resulting in fiercer competition in the EV market.
In China, the starting price of the renewed Model 3 has been lowered by 14,000 yuan, so it now costs 231,900 yuan. In Germany, the price of the rear-wheel drive Model 3 has been reduced to 40,990 euros from the previous 42,990 euros. In addition to these, similar price reductions were implemented in several countries in Europe, the Middle East and Africa, the Tesla spokesperson said.
In the United States, the price of the Model Y, Model X, and Model S was reduced by $2,000 on Friday, and on Saturday, the price of the Full Self-Driving driving support software was cut from $12,000 to $8,000.
In addition to the price reductions, there were other events around the company’s house, over the weekend Musk postponed his trip to India, during which he would have met with Prime Minister Narendra Modi and potentially announced the launch of the South Asian market. The trip was canceled citing obligations within Tesla.
Last week, Musk announced that the company would cut its global workforce by more than 10 percent. This happened after Reuters reported that Tesla had given up on the development of its long-awaited low-cost electric car and was instead focusing on its robotaxi product. Musk denied those claims without giving further details.
Tesla’s share price fell 40.8 percent this year.
Source: Reuters
Cover image source: Getty Images
