Tesla Responds to Falling Sales with Price Cuts in Major Markets
In response to declining sales and increased competition in the electric vehicle market, Tesla has implemented price cuts in major markets such as China, Germany, and the United States.
Following a drop in global vehicle deliveries in the first quarter, Tesla has reduced prices on several models. In China, the starting price of the Model 3 has been lowered by 14,000 yuan to 231,900 yuan. Similarly, in Germany, the price of the Model 3 rear-wheel drive has been reduced to 40,990 euros from 42,990 euros. Price cuts have also been seen in other regions including Europe, the Middle East, and Africa.
In the United States, Tesla has slashed prices on the Model Y, Model X, and Model S vehicles by $2,000. The price of the Full Self-Driving software has also been reduced.
As part of its cost-cutting measures, Tesla CEO Elon Musk announced plans to lay off more than 10% of the company’s global workforce. This comes as Tesla prepares for its first annual drop in deliveries and as Musk postponed a planned trip to India, where he was expected to meet with Prime Minister Narendra Modi and announce Tesla’s entry into the South Asian market.
Despite these efforts, Tesla shares have fallen by 40.8% so far this year, reflecting the challenges facing the company in a competitive and evolving market.
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