The EV company cut the beginning costs of four models by 14,000 yuan ($1,932) on Sunday in mainland China, its biggest international market.
The company’s best-selling vehicle in the nation, the Model Y, is now available for the lowest starting price ever, 249,900 yuan ($34,502).
According to its official website, Tesla’s Model 3 rear-wheel drive now costs 40,990 euros ($43,707) in Germany, the company’s largest European market, down 2,000 euros ($2,132).
Tesla lowered the price of three of its five models on Friday, announcing the first price reductions in the US. The Model 3 and Cyber truck’s costs stayed the same; however, the Model Y, Model X, and Model S all saw price reductions of $2,000 each.
The spate of layoffs coincides with a difficult period for Tesla. After reporting a decline in quarterly deliveries for the first time in almost four years and announcing job layoffs equal to more than 10% of its global workforce, the company’s stock has fallen more than 40% year to date.
Elon Musk, the CEO of Tesla, announced on Saturday that he had canceled his intended trip to India due to “very heavy” work commitments at the company.
This week, he was scheduled to land in the nation for a visit that was anticipated to feature a meeting with Prime Minister Narendra Modi and an announcement that Tesla will establish a factory in the most populated nation on earth.
China becomes more repressive
It is anticipated that Tesla’s price reductions in China, the world’s largest EV market, will intensify the already-existing price war in a fiercely competitive industry.
Li Auto (LI), a Chinese electric vehicle manufacturer headed by billionaire businessman Li Xiang, replied on Monday by declaring it was slashing the costs of all four of its models effective immediately. Its Li Mega, billed as the biggest passenger electric vehicle in the world, is currently available for 30,000 yuan ($4,142), less.
There, American businesses already faced fierce competition.
In the final quarter of last year, China’s BYD momentarily overtook Tesla as the best-selling electric vehicle brand worldwide. The prices of BYD’s vehicles are lower than those of Tesla.
In China, the entry-level model costs somewhat less than $10,000. However, after a price reduction on Sunday, the lowest Tesla vehicle, the vehicle 3, is now three times more expensive in China at 231,900 yuan ($32,017).
When Tesla lowered pricing in October 2022 to increase sales as consumers cut back on spending amid a weakening economy, China’s EV price war got underway.
The profit margins of the entire auto industry were impacted as nearly all significant manufacturers—including those that produced gasoline-powered vehicles—followed suit.
In 2024, the competition is still fierce, with over thirty major automakers announcing new price reductions.
The Guangzhou-based EV manufacturer XPeng said on Friday that it would provide 500 million yuan ($69 million) in
The Seagull hatchback, BYD’s most economical EV, saw a 5% price reduction in March, coming in at 69,800 yuan ($9,670). The smartphone maker Xiaomi entered the EV battle later that month when it unveiled its SU7 vehicle to compete with Tesla.
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