(NASDAQ: TSLA) lowered its electric vehicle (EV) prices in several major markets, including China and Germany, after similar cuts in the United States. The company faces declining sales and increasing competition, particularly from more affordable Chinese electric vehicles.
Tesla’s website reported that the company reduced the price of its Model 3 cars by 14,000 yuan ($1,930), so the latest version starts at 231,900 yuan ($32,000). In Germany, Tesla reduced the cost of its rear-wheel drive Model 3 car to 40,990 euros ($43,670) from 42,990 euros in the price of the car since February.
Today, Tesla’s (NASDAQ: TSLA) official website revealed the price adjustment in China. The revamped Model 3’s starting price has been reduced by 14,000 yuan ($1,930) to 231,900 yuan ($32,000). In Germany, the rear-wheel-drive Model 3’s cost has been reduced to 40,990 euros ($43,670.75) from the previous price of 42,990 euros.
A company spokesman said today that it will reduce the prices of some of its car models in Germany and elsewhere in Europe, the Middle East, and Africa. Tesla reduced the prices of its cars in the United States, Model 3 and Model. Yesterday, Saturday, it reduced the cost of the driver assistant program (full self-driving) to $8,000 from $12,000 in the United States.
According to a Tesla spokesperson, these price changes are part of a broader set of adjustments that have also occurred in various countries across Europe, the Middle East, and Africa.
In addition, Tesla reduced the prices of its Model Y, Model X, and Model S vehicles in the United States by $2,000 on Friday. The next day, the company reduced the cost of its complete self-driving driver assistance program in the US market to $8,000 from $12,000 the day before.
Tesla’s decision to reduce prices follows a decline in global vehicle deliveries for the first quarter of the year, the first decline in nearly four years. Electric car manufacturers also face rising interest rates that dampen consumer demand for expensive goods. By contrast, competitors in China, the world’s largest car market, have introduced more cost-effective models.
In a related development this weekend, CEO Elon Musk postponed his trip to India to discuss Tesla’s entry into the South Asian market. Musk attributed the postponement to his responsibilities at Tesla.
Last Monday, Musk announced that more than 10% of Tesla’s workforce would be laid off globally, as the company expects the first annual decline in deliveries. This followed a report on April 5 that Tesla had abandoned its plans to create an affordable electric car, focusing instead on automated vehicles.
Musk responded to the report by claiming misinformation but did not provide further details about the affordable model, leaving investors searching for clarification. Tesla stock has seen a significant decline, down 40.8% this year. Exchange rates for price conversions are 7.2403 Chinese Yuan Renminbi and 0.9386 Euros per US Dollar.
