Written by Hyun Joo Jin, Ethan Wang, Christoph Steitz
BEIJING/FRANKFURT (Reuters) – Tesla has slashed prices in a number of major markets, including China and Germany, following cuts in the United States to combat declining sales and increased price competition for electric vehicles (EVs). . , especially against cheap Chinese EVs.
The series of price cuts came after Elon Musk's EV maker reported this month that global car deliveries in the first quarter fell for the first time in nearly four years.
Tesla has cut the starting price of its updated Model 3 in China by 14,000 yuan ($1,930) to 231,900 yuan ($32,000), the company's official website said on Sunday.
In Germany, the automaker lowered the price of the rear-wheel-drive Model 3 to 40,990 euros ($43,670.75) from 42,990 euros since February.
A Tesla spokesperson said price cuts were also made in many other countries in Europe, the Middle East and Africa.
The company on Friday reduced the U.S. price of the Model Y, Model X and Model S by $2,000. On Saturday, the company lowered the price of its fully self-driving driver assistant software in the U.S. from $12,000 to $8,000.
While rival companies are introducing lower-priced models in China, the world's largest automobile market, the company has been slow to update its aging models as high interest rates reduce consumer appetite for expensive products. .
This weekend, Musk postponed a trip to India where he was scheduled to meet Prime Minister Narendra Modi, citing obligations at Tesla. The visit was also expected to include an announcement of Tesla's plans to enter the South Asian market, Reuters reported on Saturday.
Musk announced last Monday that Tesla would lay off more than 10% of its global workforce as it prepares for its first annual drop in car deliveries.
The announcement comes after Reuters reported on April 5 that Tesla had scrapped plans to develop its long-awaited affordable electric vehicle in favor of robotaxis. After the report, Musk wrote, “Reuters is lying,” without mentioning the inaccuracies. He has not said more about the model, and investors are seeking clarity.
Tesla stock has fallen 40.8% since the beginning of the year.
(1 dollar = 7.2403 Chinese Yuan)
(1 dollar = 0.9386 euro)
(Reporting by Ethan Wang, Bernard Orr, Hyun-joo Jin; Additional writing by Tom Sims; Editing by Michael Perry, William Mallard and Frances Kelly)
