In response to declining sales and escalating competition in the electric vehicle market, billionaire Elon Musk-led Tesla has implemented price reductions across several key markets, including China and Germany, mirroring recent cuts in the United States. Musk took to social media platform X to assert that the company’s pricing strategy must remain dynamic to align with demand and production fluctuations.
Other cars change prices constantly and often by wide margins via dealer markups and manufacturer/dealer incentives. Only a fool thinks the “MSRP” is the real price.
Tesla prices must change frequently in order to match production with demand.
— Elon Musk (@elonmusk) April 21, 2024
The move comes after the automaker reported its first quarterly decline in global vehicle deliveries in nearly four years. A Reuters report noted that the starting price of the Model 3 in China saw a reduction of 14,000 yuan ($1,930), while in Germany, the price of the Model 3 rear-wheel-drive variant was slashed to 40,990 euros ($43,670.75).
A Tesla spokesperson confirmed to the media outlet about the price cuts in various regions spanning Europe, the Middle East, and Africa. The move follows the recent price cut in the United States, wherein the prices of the Model Y, Model X, and Model S were reportedly trimmed by $2,000, alongside a reduction in the price of Tesla’s Full Self-Driving software from $12,000 to $8,000.
In light of these developments, Elon Musk has postponed his visit to India citing “very heavy Tesla obligations” but reassured to visit the country later this year. Reportedly, the reason for the delay could be Tesla’s much-eyed earnings call on April 23. Investors are expected to seek clarity from the CEO about the company’s roadmap to tackle challenges it is facing in its primary markets of the United States and China, with declining sales and increased competition. Amid all this, Tesla recently also announced to lay off more than 10 percent of its global workforce.
