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Tesla Lowers Pricing After US Cutbacks In China, Germany, And Other Countries

Tesla Lowers Pricing After US Cutbacks In China, Germany, And Other Countries
Due to declining sales and a growing price war for electric vehicles (EVs), particularly with Chinese EVs, Tesla has lowered prices in several of its major countries, including China and Germany, after lowering prices in the US.
The price reductions follow Tesla's announcement this month that worldwide car deliveries in the first quarter decreased for the first time in almost four years, under the leadership of its billionaire CEO Elon Musk.
"Tesla prices must change frequently in order to match production with demand," Musk posted on X, opens new tab on Sunday.
Over a year ago, Tesla, the market leader in electric vehicles, started an aggressive pricing battle for EVs by slashing costs at the risk of profit margins.
On Sunday, Tesla's official website revealed that the starting price of the redesigned Model 3 in China had been lowered by 14,000 yuan ($1,930) to 231,900 yuan ($32,000).
The Model 3 rear-wheel-drive's pricing in Germany was dropped from 42,990 euros ($43,670.75), where it has been since February, to 40,990 euros ($43,670.75).
According to a Tesla representative, there were price reductions in numerous other nations in Europe, the Middle East, and Africa.
On Friday, the Model Y, Model X, and Model S's US pricing were reduced by $2,000. Tesla reduced the cost of its Full Self-Driving driver assistance software in the US on Saturday from $12,000 to $8,000.
Due to high borrowing rates that have reduced customer demand for expensive goods, rivals in China, the largest car market in the world, are releasing less expensive models, but Tesla has been sluggish to update its aged models.
Due to duties at Tesla, Musk had to cancel his trip to India this past weekend, which included a scheduled meeting with Prime Minister Narendra Modi. Reuters said on Saturday that part of the trip was supposed to involve the announcement of Tesla's plans to join the South Asian market.
Musk announced last Monday that Tesla is preparing for its first annual decline in deliveries and will be laying off over 10% of its global staff.
The statement followed Reuters' April 5 story that Tesla has abandoned plans to construct its much-anticipated cheap electric vehicle in lieu of robotaxis. Following the report, Musk said on Twitter, "Reuters is lying," without providing any specific errors. Since he hasn't discussed the methodology any more, investors are begging for clarification.
This year, the share price of Tesla has dropped by 40.8%.

Christopher J. Mitchell

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