Tesla has implemented price reductions in key markets such as China, Germany, and other European countries, following similar cuts in the United States. This comes amid declining sales and heightened competition in the electric vehicle (EV) sector, particularly from Chinese EV makers.
Tesla Cuts Prices in China and Germany
According to Reuters, the decision to lower prices follows Tesla's recent announcement of a decline in global vehicle deliveries for the first quarter, marking the first such decrease in nearly four years. In response to these challenges, Tesla CEO Elon Musk emphasized the need to change prices frequently "in order to match production with demand."
The starting price of the revamped Model 3 in China has been reduced by 14,000 yuan ($1,930) to 231,900 yuan ($32,000). In Germany, the price of the Model 3 rear-wheel-drive variant has been lowered to 40,990 euros ($43,670.75), down from 42,990 euros previously set in February.
Tesla has been a catalyst in the ongoing price war in the EV industry. It prompted an EV price war more than a year ago when it aggressively reduced prices at the expense of profit margins.
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Price Adjustments of Tesla in Europe, Middle East, and Africa
A Tesla spokesperson told Reuters that these price adjustments extend to other countries in Europe, the Middle East, and Africa.
In addition to vehicle price cuts, Tesla has also reduced the price of its Full Self-Driving driver assistant software in the United States, lowering it to $8,000 from $12,000. So far, the company's shares have fallen by more than 40 points this year.
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