Tesla, the well-known electric vehicle (EV) maker, has reduced the prices of its cars in several major markets, including China and Germany. This decision follows a recent price drop in the United States and comes at a time when Tesla is facing tougher competition, especially from Chinese EV companies. The price cuts were announced shortly after Tesla CEO Elon Musk postponed a planned trip to India, where he was expected to make significant announcements about the company’s plans in the region.
The price of Tesla’s popular Model 3 car in China has been cut by 14,000 yuan. In Germany, the price for the same model is now set at 40,990 euros. Similar price reductions have been applied in other parts of Europe, as well as the Middle East and Africa. In the United States, the prices for Tesla’s Model Y, Model X, and Model S have been lowered by $2,000. Additionally, the cost for Tesla’s Full Self-Driving software has been reduced to $8,000.
These price changes come as Tesla reported its first drop in global vehicle deliveries in almost four years, indicating a slowdown in sales. Elon Musk has mentioned that these price adjustments are necessary to match production with the current demand. Amid these changes, Tesla is also preparing to reduce its workforce by over 10% due to an expected decline in deliveries this year.
Elon Musk’s highly anticipated visit to India was supposed to happen on April 21-22, but it was delayed just a day before due to urgent commitments at Tesla. This trip was expected to include meetings with Prime Minister Narendra Modi and would likely have been a significant step toward launching Tesla’s operations in India. Following the delay, Musk expressed his intention to reschedule the visit for later this year.
The delay coincides with India introducing a new policy requiring foreign EV makers to invest significantly in local manufacturing facilities to enter the market. Reports suggest that Tesla is exploring potential locations in India for a plant, with an expected investment of around USD 2 billion.
Stay tuned for more updates on Tesla’s activities in India and the impacts of their global price adjustments.
