Tesla has implemented price cuts in several key markets, including China and Germany, in response to declining sales and increased competition in the electric vehicle (EV) market, Reuters reports.
The price adjustments follow a reported decrease in global vehicle deliveries in the first quarter, marking the first decline in nearly four years for the company. Tesla CEO Elon Musk stated that frequent price changes are necessary to align production with demand. The company reduced the starting price of the Model 3 in China and Germany and made cuts in other countries across Europe, the Middle East, and Africa. Despite these adjustments, Tesla has been slow to update its aging models and adapt to increased competition, particularly from Chinese rivals.
Musk also postponed a planned trip to India to meet Prime Minister Narendra Modi, citing obligations at Tesla. Last week, Tesla announced layoffs of over 10% of the company’s global workforce as the automaker anticipates its first annual decline in deliveries.
