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Business: Tesla Cuts Prices in Major Markets as Sales Fall

In a shocking news, Tesla cuts prices in major markets as sales fall drastically. Tesla sales has fallen more than 30%.

Tesla has lowered its prices again in a number of major nations, including the United States, China, and Germany, as the electric car company led by multimillionaire Elon Musk faces declining sales.

The move comes after it announced a significant decrease in global vehicle deliveries in the first three months of this year.

A price war has erupted among electric vehicle (EV) manufacturers, with Chinese companies leading the charge.

Tesla is scheduled to announce financial results for the first quarter of 2024 after the US market closes on Tuesday.

Mr Musk stated in a tweet on social media platform X, formerly Twitter, that “Tesla prices must change frequently in order to match production with demand”.

In China, the company reduced the beginning price of the updated Model 3 by 14,000 yuan ($1,934; £1,562) to 231,900 yuan.

Prices for the Model Y, Model X, and Model S automobiles in the United States were reduced by $2,000 (£1,616) on Friday.

According to Reuters, prices were also reduced in a number of other European, Middle Eastern, and African countries.

Tesla started an EV price war over a year ago by aggressively lowering prices at the expense of profit margins.

The company has been hesitant to renew its aging models, while rivals in China, such as BYD and Nio, have been releasing cheaper ones. Xiaomi, a Chinese smartphone manufacturer, also introduced its first electric vehicle last month.

Last week, Tesla announced intentions to lay off over 10% of its global workforce.

Mr Musk announced over the weekend that he would postpone a planned trip to India, where he was scheduled to see Prime Minister Narendra Modi, due to “very heavy Tesla obligations”.

On Friday, the company recalled thousands of its new Cybertrucks due to safety concerns.

It is because their accelerator pedals are currently at risk of becoming trapped by the interior trim, increasing the likelihood of a crash.

Tesla’s shares have declined by more than 40% since the beginning of this year.