Tesla has recently implemented price reductions in several key markets, including China and Germany, in response to declining sales and escalating competition in the electric vehicle sector.
This move follows earlier price adjustments in the United States.
In a statement on Sunday, Tesla’s CEO Elon Musk emphasized the necessity of frequent price changes to align production with demand. The company, renowned as a leader in the EV market, initiated an EV price battle over a year ago by aggressively reducing prices, albeit at the expense of profit margins.
In China, Tesla reduced the starting price of the revamped Model 3 by 14,000 yuan ($1,930) to 231,900 yuan ($32,000), as displayed on its official website.
Similarly, in Germany, the price of the Model 3 rear-wheel-drive was lowered from 42,990 euros to 40,990 euros. Additionally, Tesla confirmed price cuts in various other regions across Europe, the Middle East, and Africa.
On Friday, Tesla decreased the prices of its Model Y, Model X, and Model S vehicles in the United States by $2,000. Subsequently, on Saturday, the company slashed the price of its Full Self-Driving driver assistance software from $12,000 to $8,000 in the same market.
Tesla’s sluggishness in updating its aging models, coupled with diminished consumer demand due to high-interest rates, has contributed to its challenges. Meanwhile, competitors in China, the world’s largest auto market, are introducing more affordable models.
