Tesla's global price-cutting strategy sent shares down in response.
Faced with declining sales and competition from electric vehicles in China, Tesla has cut prices in several major markets.。
Tesla (TSLA) has implemented price reduction strategies in several major markets amidst declining sales and intense competition in the Chinese electric vehicle market. This is one of Tesla's responses to slowing sales and competitive pricing in the electric vehicle sector, particularly as global delivery volumes saw their first decline in nearly four years in the first quarter.
In the Chinese market, Tesla lowered the starting price of the redesigned Model 3 by 14,000 yuan (approximately $1,930) to 231,900 yuan (approximately $32,000). In the German market, the price of the rear-wheel-drive version of the Model 3 was reduced from 42,990 euros to 40,990 euros. A Tesla spokesperson stated that price adjustments have also been made in many other countries in Europe, the Middle East, and Africa.
In the U.S. market, Tesla lowered the prices of the Model Y, Model X, and Model S by $2,000 last Friday. Additionally, the price of Full Self-Driving (FSD) assistance software was reduced from $12,000 to $8,000.
In an environment of high interest rates and reduced consumer demand for commodities, coupled with competitors in the Chinese market introducing cheaper models, Tesla faces pressure to update its aging models.
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