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Tesla CEO wrote on his social platform X, about the price cut down, says the price should change to match the demand.
The battle between electric vehicles (EVs) and traditional manual vehicles is shaping up to be a prolonged struggle in the automotive market. Despite EVs being designed to dominate, there has been a downturn in their sales, posing challenges for several brands.
Tesla, in response to market demands, appears to be adjusting by reducing prices for select models in key markets such as China and Germany. Late on Friday, Tesla reduced the prices of three out of its five models in the US. Following this, the company proceeded to lower prices globally, including in China and Germany. This move comes amidst declining sales, a Cybertruck recall, and escalating competition in the electric vehicle (EV) market.
This step comes in after Tesla reported about the fall in sales in first quarter for the first time in four years, TeslaCEO, Billionaire, Elon Musk took his social media platform ‘X’ and posted “Tesla’s Prices must change frequently in order to match production with demand.”
Tesla has reduced the prices of its Model Y, the leading electric SUV in the US and a flagship model for the company, along with that of the Model X and Model S, its earlier, higher-end offerings. Meanwhile, the prices for the Model 3 sedan and the Cybertruck have remained unchanged.
The reductions brought down the initial price for Model Y to $42,990, while the Model S and Model X now start at $72,990 and $77,990, respectively. Following this, on Saturday, Tesla also dropped the price of its “Full Self-Driving” driver assistance software in the US from $12,000 to $8,000. The price adjustments persisted into Sunday, with Tesla lowering the starting price of the updated Model 3 in China by 14,000 yuan ($1,930) to 231,900 yuan ($32,000), as indicated on its official website.
In Germany, Tesla reduced the price of its Model 3 rear-wheel drive from €42,990 to €40,990 ($43,670.75), maintaining the same price since February. Additionally, a Tesla spokesperson mentioned that there were price adjustments in numerous other countries across Europe, the Middle East, and Africa.
The series of price reductions comes after the company’s recent announcement that its worldwide vehicle deliveries for the first quarter experienced a decline, marking the first such decrease in almost four years. Also, this week, Tesla shares dropped below $150, erasing all gains the company had accrued over the past year.