Tesla has recently reduced prices by close to $2,000 on its various models in China, mirroring similar price adjustments in the United States. The decision comes as the company faces declining sales and heightened competition in the electric vehicle (EV) market, particularly from more affordable Chinese EV brands.
The EV maker lowered the starting price of the updated Model 3 in China by 14,000 yuan ($1,930) to 231,900 yuan, while comparable price reductions were also applied to other models, such as the Model Y, Model S, and Model X.
In addition to the price cuts in China, Tesla also reduced prices for its Model Y, Model X, and Model S in the U.S. by $2,000 and slashed the price of its Full Self-Driving software from $12,000 to $8,000.
Meanwhile, Tesla recently reported a decline in global vehicle deliveries for the first quarter of the year, highlighting challenges in stimulating sales momentum. The company has been facing challenges amid sluggish consumer demand due to high interest rates and fierce competition from domestic rivals in China’s robust auto market.
According to the information from Reuters reported by CNBC, Tesla’s CEO, Elon Musk, postponed a scheduled visit to India, where discussions with Prime Minister Narendra Modi were set to take place regarding Tesla’s entry into the South Asian market.
Moreover, an earlier report by Reuters suggested that Tesla had abandoned plans for an affordable EV in favor of focusing on robotaxis, while Musk responded by stating that “Reuters is lying,” but did not give further details on the situation.
The lack of clarity around Tesla’s strategy has left investors seeking more insights as Tesla shares have experienced a 40.8% decline since the beginning of the year.
