Tesla Slashes Prices Globally Amidst Declining Sales and Intensifying EV Competition

By Editor


In a strategic move to address dwindling sales and combat the escalating price war within the electric vehicle (EV) industry, Tesla has announced significant price reductions across several key markets, mirroring earlier price adjustments in the United States.

The decision follows Tesla’s recent revelation of a decline in global vehicle deliveries for the first quarter, marking the first downturn in nearly four years under the leadership of billionaire CEO Elon Musk, Reuters news report said.

“Tesla prices must change frequently in order to match production with demand,” Elon Musk asserted in a social media post on Sunday, underlining the necessity of agile pricing strategies in response to market dynamics.

Having spearheaded an EV price battle over a year ago through aggressive price cuts, Tesla is now readjusting its pricing framework to stay competitive amidst evolving market conditions, albeit at the expense of profit margins.

Notable among the price adjustments is the reduction in the starting price of the revamped Model 3 in China, slashed by 14,000 yuan ($1,930) to 231,900 yuan ($32,000), as indicated on Tesla’s official website.

Similarly, in Germany, the price of the Model 3 rear-wheel-drive variant saw a trim to 40,990 euros ($43,670.75) from its previous level of 42,990 euros, effective since February.

According to a Tesla spokesperson, price cuts have also been implemented across various countries in Europe, the Middle East, and Africa, reflecting the company’s global strategy to adapt to market demands.

Furthermore, Tesla reduced prices for its Model Y, Model X, and Model S vehicles by $2,000 in the United States on Friday. Subsequently, the price of its Full Self-Driving driver assistant software was slashed to $8,000 from $12,000 on Saturday.

The move comes as Tesla grapples with sluggish model updates amid subdued consumer interest fueled by high interest rates, while competitors in China, the world’s largest auto market, introduce more affordable EV models, intensifying competition in the sector.

GreentechLead.com News Desk

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