Tesla has once again reduced its prices in several key markets, including the US, China, and Germany, as the electric car company, led by billionaire Elon Musk, contends with declining sales.
This decision follows a significant drop in global vehicle deliveries during the first three months of the year.
An escalating price war among electric vehicle (EV) manufacturers, especially from Chinese companies, has added to the competitive pressure.
Tesla is scheduled to release its financial results for the first quarter of 2024 after the US market closes on Tuesday.
In a post on social media platform X, formerly Twitter, Mr Musk said: “Tesla prices must change frequently in order to match production with demand.”
Other cars change prices constantly and often by wide margins via dealer markups and manufacturer/dealer incentives. Only a fool thinks the “MSRP” is the real price.
Tesla prices must change frequently in order to match production with demand.
— Elon Musk (@elonmusk) April 21, 2024
Tesla has implemented price reductions in several key markets, including a 14,000 yuan (£1,562) cut in the starting price of the revamped Model 3 in China, now priced at 231,900 yuan.
In the US, prices for the Model Y, Model X, and Model S vehicles were reduced by $2,000 (£1,616) last Friday.
According to Reuters, price cuts have also been implemented in many other countries across Europe, the Middle East, and Africa.
Tesla initiated an electric vehicle (EV) price war over a year ago by aggressively lowering prices, even at the expense of profit margins.
While Tesla has been slow to update its aging models, competitors in China, such as BYD and Nio, have been introducing more affordable models. Chinese smartphone maker Xiaomi also entered the EV market last month.
Last week, Tesla announced intentions to lay off over 10% of its global workforce.
Elon Musk recently announced the postponement of his planned trip to India, where he was set to meet Prime Minister Narendra Modi, citing “very heavy Tesla obligations.”
The company issued a recall for thousands of its new Cybertrucks due to safety concerns. The accelerator pedals risk becoming trapped by the interior trim, increasing the likelihood of accidents.
Tesla’s shares have declined by over 40% since the beginning of this year.