Shortly after lowering pricing in the US, Tesla, the leading manufacturer of Electric Vehicles (EVs), has announced steep price reductions in China and Germany as it deals with diminishing sales and escalating competition in key countries.
In a post on social media platform X, formerly Twitter, Mr Musk said: “Tesla prices must change frequently in order to match production with demand.”
The EV giant lowered the starting price for all four models by 14,000 yuan ($1,932) in mainland China, its biggest international market.
The Model Y, the company’s best-selling vehicle in the nation, is now available for 249,900 yuan or $34,502, which is the lowest starting price ever.
According to Tesla’s official website, the Model 3 rear-wheel drive now costs €40,990 ($43,707) in Germany, down €2,000 ($2,132).
Tesla announced its first-ever price reductions in the US on Friday. Out of its five models, the Model Y, Model X, and Model S have seen a $2,000 price drop each, while the costs of the Model 3 and Cybertruck have remained unchanged.
More than a year ago, the company’s aggressive price cuts at the expense of profit margins ignited the EV price war.
While competitors in China, including BYD and Nio, have been releasing less expensive models, the company has been sluggish to update its aged models.
Last month, Xiaomi, a Chinese smartphone manufacturer, unveiled its first electric vehicle.
For the first time in almost four years, Tesla recently revealed that quarterly deliveries had decreased by 8.5% in the first three months of the year.
The EV manufacturer’s quarterly earnings report is scheduled for release on Tuesday, and Wall Street is anticipating a further slowdown in revenue growth and net profitability.
The company recalled thousands of its brand-new Cybertrucks on Friday due to safety issues.
This is due to the current risk of their accelerator pedals becoming trapped by the interior trim, which raises the likelihood of collisions.