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Tesla’s cuts prices in China to boost sales amid fierce electric car competition – Republic World

Vaseline 1 month ago

Tesla’s global prices: Tesla has adjusted its pricing strategy in China, following recent cuts in the United States. The move comes amid declining sales and increased competition in the electric vehicle (EV) market, especially from more affordable Chinese EV brands.

Elon Musk’s company lowered the starting price of the updated Model 3 in China by 14,000 yuan ($1,930), now priced at 231,900 yuan ($32,000), according to its official website on Sunday.

Model price adjustments

Similar adjustments were made to other models: the Model Y now starts at 249,900 yuan, the regular Model S at 684,900 yuan and the Model S Plaid at 814,900 yuan. Moreover, the regular Model

Tesla also cut the prices of its Model Y, Model X and Model S in the US by $2,000 on Friday. Additionally, on Saturday in the US, it cut the price of its fully self-driving driver assistant software from $12,000 to $8,000.

Global supply decline

The company recently reported a decline in global vehicle deliveries for the first quarter, citing insufficient demand despite price adjustments.

Tesla’s slow response in updating its aging models and prevailing high interest rates impacting consumer spending have contributed to the challenges. Meanwhile, competitors in China, the world’s largest auto market, are introducing cheaper alternatives.

Elon Musk postponed his planned visit to India, where he was expected to meet Prime Minister Narendra Modi and unveil Tesla’s plans for the South Asian market. According to Reuters, the decision was due to obligations at Tesla.

Staff reduction plan

In a related development, Musk announced plans to reduce Tesla’s global workforce by more than 10 percent, ahead of the company’s first annual drop in deliveries.

Amid uncertainties, investors are seeking clarity on Tesla’s long-awaited affordable EV. After reports emerged that Tesla had abandoned plans for this model in favor of robotaxis, Musk refuted the claims without providing further details, leaving investors curious to know more.

Tesla shares are down 40.8 percent this year.

(With Reuters input)