Tesla opened a new chapter by cutting prices in a number of its key markets, including China and Germany, Reuters reported. The company has already cut prices in the United States.
The company is trying to combat falling sales and an intensifying price war for electric cars, especially with Chinese manufacturers.
Tesla, led by its CEO, billionaire Elon Musk, reported earlier this month that global car shipments in the first quarter fell for the first time in nearly four years.
“Tesla prices need to change frequently to match production with demand,” Musk wrote on X on Sunday.
Tesla, the leader in the electric car market, ignited the “war” more than a year ago by aggressively cutting prices at the expense of profit margins.
The company has now cut the base price of the facelifted Model 3 in China by 14,000 yuan ($1,930) to 231,900 yuan ($32,000), according to information on its official website on Sunday, Reuters noted.
In Germany, the price of the rear-wheel drive Model 3 was cut to 40,990 euros ($43,670.75) from 42,990 euros in February.
Prices also fell in many other countries in Europe, the Middle East and Africa, a Tesla spokesman said.
U.S. prices for the Model Y, Model X and Model S were cut by $2,000 on Friday. On Saturday, Tesla dropped the price of its self-driving software to $8,000 from $12,000 for the US market.
Tesla has been slow to refresh its aging models as high interest rates have dampened consumer appetite for expensive items, while rivals in China, the world’s biggest car market, are rolling out cheaper models.
This weekend, Musk postponed a planned trip to India, where he was supposed to meet with Prime Minister Narendra Modi, motivated by duties at Tesla. Musk was scheduled to announce Tesla’s plans to enter the South Asian market from Delhi, Reuters reported on Saturday.
Musk said last Monday that Tesla would cut more than 10 percent of its workforce globally as the automaker prepares for its first annual drop in shipments.
Reuters recalls its announcement on April 5 that Tesla had abandoned its plan to develop its long-awaited affordable electric car robo-taxi. Musk then responded that “Reuters is lying,” without elaborating. He hasn’t talked about the model since, leaving investors to wait for more clarity.
Tesla shares have fallen 40.8% since the start of the year, Reuters notes.
($1 = 7.2403 Chinese Yuan Renminbi)
($1 = 0.9386 euros)
