Tesla (NASDAQ:TSLA) has recently initiated price reductions across key markets such as China and Germany, following similar actions in the United States. These adjustments come as the company faces challenges amidst a downturn in sales and heightened competition within the electric vehicle (EV) sector.
In China, Tesla slashed the price of its updated Model 3 by 14,000 yuan ($1,930), now listed at 231,900 yuan ($32,000) on its official website. Similarly, in Germany, the price of the Model 3 rear-wheel-drive version dropped to 40,990 euros ($43,670.75) from 42,990 euros.
Additional price cuts were implemented across various regions including Europe, the Middle East, and Africa, according to a spokesperson from Tesla.
These moves follow Tesla's recent price reduction of $2,000 for the Model Y, Model X, and Model S in the US. Moreover, the company decreased the price of its Full Self-Driving (FSD) assistant software from $12,000 to $8,000.
Tesla has been actively engaged in an EV price war for over a year, consistently lowering prices, which has impacted its profit margins. However, the company has faced challenges in updating its older models swiftly, partly due to high interest rates that have constrained consumer spending on high-ticket items.
Furthermore, in China, the world's largest auto market, competitors are introducing more affordable EV models, intensifying the competitive landscape.
Earlier this month, Tesla announced plans to lay off over 10% of its global workforce as it braces for its first annual decline in deliveries.
Paraphrasing text from "Investing" all rights reserved by the original author.
