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Tesla is battling declining sales and a growing pricing war for electric vehicles (EVs), especially against cheaper Chinese EVs. As a result, the company has slashed prices across the board by almost $2,000 in China, after price reductions in the US. The official website of Elon Musk's electric vehicle manufacturer revealed on Sunday that the beginning price of the updated Model 3 in China has been lowered by 14,000 yuan ($1,930) to 231,900 yuan ($32,000).
Tesla is battling declining sales and a growing pricing war for electric vehicles (EVs), especially against cheaper Chinese EVs. As a result, the company has slashed prices across the board by almost $2,000 in China, after price reductions in the US. The official website of Elon Musk’s electric vehicle manufacturer revealed on Sunday that the beginning price of the updated Model 3 in China has been lowered by 14,000 yuan ($1,930) to 231,900 yuan ($32,000). The Model Y’s starting price has been lowered to 249,900 yuan by Tesla, while the Model S standard and Model S Plaid’s starting prices have been lowered to 684,900 and 814,900 yuan, respectively. 724,900 yuan for the standard Model X and 824,900 yuan for the plaid variant are the current prices.
The automaker reduced the cost of its Model Y, Model X, and Model S cars in the United States by $2,000 on Friday. It reduced the cost of its Full Self-Driving Driver Assistance Software to $8,000 on Saturday from $12,000 in the US. This month, Tesla revealed that, due to a lackluster response to price reductions, global car deliveries declined in the first quarter for the first time in almost four years. Since rising interest rates have reduced customer demand for expensive goods, the EV manufacturer has been sluggish to update its aging models, while competitors in China, the largest vehicle market in the world, are releasing more affordable versions.
Musk cited duties at Tesla as justification for canceling a trip to India this past weekend, when he was supposed to see Prime Minister Narendra Modi. According to a Saturday report, part of the trip’s agenda was to announce Tesla’s intention to join the South Asian market. Tesla is preparing for its first yearly decline in deliveries, and Musk announced last Monday that the company will be laying off almost 10% of its global employment. Accodring to the inofrmation, which stated that Tesla had abandoned its plans to produce its long-awaited cheap EV in favor of robotaxis, the company announced its decision. Investors are begging for clarification, as he has not discussed the model any more. This year, Tesla’s share price has dropped by 40.8%. As Musk pushed for volume expansion at the expense of profitability, Tesla started a price war in late 2022.
