Tesla has once again slashed its prices in several key markets, including the US, China, and Germany, amid declining sales for the electric car titan led by billionaire Elon Musk.
This move follows a significant drop in global vehicle deliveries during the first quarter of this year.
Chinese EV manufacturers fiercely compete
Competition among electric vehicle (EV) manufacturers has escalated, with Chinese companies particularly vying fiercely for market share.
Tesla is set to announce its financial results for the first quarter of 2024 after the US market closes on Tuesday.
Elon Musk took to the social media platform X, formerly Twitter, stating that “Tesla prices must change frequently to match production with demand”.
In China, the company reduced the starting price of the revamped Model 3 by 14,000 yuan ($1,934; £1,562) to 231,900 yuan.
Meanwhile, prices of the Model Y, Model X, and Model S vehicles in the US were cut by $2,000 (£1,616) on Friday.
According to Reuters news agency, there were also price reductions in numerous other countries across Europe, the Middle East, and Africa.
An EV price war
Tesla initiated an EV price war over a year ago when it aggressively lowered prices, sacrificing profit margins in the process.
While rivals in China, such as BYD and Nio, have been rolling out cheaper models, Tesla has been slow to refresh its aging lineup. Additionally, Chinese smartphone maker Xiaomi recently launched its first EV last month.
Last week, Tesla announced plans to lay off over 10% of its global workforce.
Over the weekend, Musk announced the postponement of his 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. The recall was prompted by the risk of accelerator pedals becoming trapped by the interior trim, increasing the likelihood of accidents.
Tesla’s shares have plummeted by more than 40% since the beginning of this year.
