Tesla slashes prices of cars globally amid falling sales
What's the story
Tesla, the leading electric vehicle (EV) manufacturer, has announced significant price cuts in several major markets including China, Germany, and the US.
This strategic move comes as a response to declining sales, and increased competition from more affordable Chinese EVs.
CEO Elon Musk stated that "Tesla prices must change frequently in order to match production with demand."
The announcement follows a recent report indicating a drop in Tesla's global vehicle deliveries, for the first time in roughly four years.
Market adjustment
Model 3 pricing adjusted in key markets
In China, Tesla has reduced the base price of its new Model 3 by CNY 14,000 ($1,930) to CNY 231,900 ($32,000), as shown on its official website.
Meanwhile in Germany, the cost of the Model 3's rear-wheel-drive version, has been lowered to €40,990 ($43,671) from €42,990.
A Tesla representative confirmed that similar price reductions have been implemented across various countries in Europe, Africa, and the Middle East.
US reductions
Tesla cuts prices in the US and reduces FSD cost
In the US, Tesla has cut prices for Model Y, Model S, and Model X vehicles by $2,000.
In addition to vehicle price reductions, the company has also lowered the cost of its Full Self-Driving (FSD) driver assistant software from $12,000 to $8,000.
These changes come as Tesla grapples with operational challenges like high-interest rates affecting consumer interest in high-priced items, and growing competition from cheaper Chinese models.
Operational challenges
Workforce reduction and delayed India expansion
In related news, Musk postponed a scheduled trip to India where he was expected to meet PM Narendra Modi, and unveil plans for Tesla's expansion here.
This delay coincides with Musk's revelation last week, that Tesla will slash over 10% of its global workforce, in anticipation of its first yearly decrease in deliveries.
These developments follow a report that Tesla had scrapped plans to create an affordable EV in favor of robotaxis, a claim Musk denied without specifying any inaccuracies.