The picture shows a Model Y car taken at the opening ceremony of the new Tesla electric vehicle Gigafactory in Grünheide, Germany on March 22, 2022.
Patrick Puller | Pool | via Reuters
Tesla The company slashed prices on all its models in China by nearly $2,000, following price cuts in the U.S., in response to declining sales and an intensifying electric vehicle (EV) price war, especially for cheaper Chinese EVs.
Elon Musk’s electric car maker has lowered the starting price of the facelifted Model 3 in China by 14,000 yuan ($1,930) to 231,900 yuan, its official website showed on Sunday.
Tesla has also made a similar reduction in the starting price of Model Y, which is now 249,900 yuan. The starting price of the regular version of Model S is 684,900 yuan, and the starting price of Model S Plaid is 814,900 yuan. Currently, the regular version of Model X is priced at 724,900 yuan, and the plaid version is priced at 824,900 yuan.
The automaker on Friday cut the U.S. prices of its Model Y, Model X and Model S vehicles by $2,000. On Saturday, the company lowered the price of its fully autonomous driving assistance software in the United States from $12,000 to $8,000.
Tesla reported this month that its first-quarter global vehicle deliveries fell for the first time in nearly four years as price cuts failed to stimulate demand.
The electric car maker has been slow to update its aging models as high interest rates dent consumer appetite for big-ticket items, while rivals in China, the world’s largest auto market, are rolling out cheaper models.
Citing Tesla obligations, Musk postponed his planned trip to India this weekend to meet with Indian Prime Minister Narendra Modi. The purpose of the trip was to announce Tesla’s plans to enter the South Asian market, Reuters reported on Saturday.
Musk said on Monday that Tesla would cut more than 10% of its global workforce as the company braced for its first decline in annual deliveries.
Reuters reported on April 5 that Tesla has scrapped The company plans to develop long-awaited affordable electric vehicles to support robotaxis. Musk tweeted after the report was released that “Reuters is lying,” but did not point out any inaccuracies. He didn’t talk further about the model, leaving investors clamoring for clarification.
Tesla shares have fallen 40.8% so far this year.
Since the end of 2022, Tesla has triggered a price war as Musk pursues sales growth at the expense of profits.
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