image source, Getty Images
- author, Mariko Oi
- role, business reporter
Tesla has cut prices again in a number of major markets, including the United States, China and Germany, as the electric car giant run by billionaire Elon Musk faces declining sales.
Price competition among electric vehicle (EV) manufacturers is intensifying, especially with Chinese companies.
Tesla is scheduled to report its first-quarter 2024 financial results after the U.S. market closes on Tuesday.
In China, the company has lowered the starting price of the updated Model 3 by 14,000 yuan ($1,934, £1,562) to 231,900 yuan.
In the US, the price of the Model Y, Model X and Model S was cut by $2,000 (£1,616) on Friday.
Price cuts were also made in many other countries in Europe, the Middle East and Africa, according to Reuters.
Tesla started a price war on EVs more than a year ago by aggressively lowering prices at the expense of profit margins.
The company has been slow to update its aging models as Chinese rivals like BYD and Nio roll out cheaper models. Chinese smartphone maker Xiaomi also launched its first EV last month.
Over the weekend, Musk announced he was postponing his planned trip to India to meet Prime Minister Narendra Modi, citing “very heavy obligations to Tesla.”
The company recalled thousands of new Cybertrucks on Friday, citing safety concerns.
Currently, there is a danger that the accelerator pedal may get caught in the interior trim, increasing the possibility of a collision.
Tesla stock has fallen more than 40% since the beginning of this year.
