According to Reuters, Tesla Group has implemented electric vehicle price cuts in several core markets, including China and Germany, after applying a similar strategy in the US. This decision was made to boost declining sales and cope with the fierce price war in the electric vehicle (EV) segment, especially in the face of strong competition from Chinese manufacturers. .
The price cut comes after Tesla, under the leadership of CEO Elon Musk, announced that global vehicle sales in the first quarter fell for the first time in nearly four years. "Tesla car prices need to be adjusted regularly to match production and market demand," Mr. Musk shared on the X network.
Tesla was forced to reduce the price of electric cars under many pressures
More than a year ago, Tesla initiated an electric car price war by aggressively reducing prices despite the impact on profits. According to the company's official website, the starting price of the improved Model 1 in China is at 3 yuan (equivalent to 231.900 million VND), down 815 yuan (14.000 million VND) compared to before.
Similarly, in Germany, the price of the all-wheel drive Model 3 decreased from 42.990 euros to 40.990 euros (equivalent to 1,1 billion VND). A Tesla spokesman said the new prices also apply to many other countries in Europe, the Middle East and Africa.
In the US market, the selling prices of Model Y, Model X and Model S were reduced by 2.000 USD (about 50 million VND) last Friday. One day later, Tesla also reduced the price of Full Self-Driving automatic driving software from $12.000 to $8.000.
Tesla's electric vehicle sales are facing difficulties due to rising interest rates, causing consumers to limit spending on expensive items. In addition, competitors in China, known as the world's largest auto market, are launching cheaper electric car models, putting significant pressure on Tesla.
The all-wheel drive Model 3 is reduced to 40.990 euros in Germany
CARSCOOPS SCREENSHOT
Over the weekend, billionaire Musk postponed his planned trip to India due to being busy at Tesla. According to Reuters, this trip is expected to bring announcements about Tesla's plans to enter the South Asian market.
Previously, Mr. Musk said Tesla would lay off more than 10% of its global employees early last week as the company prepared for its first drop in delivery sales all year.
This announcement comes after news that Tesla canceled its long-awaited plan to develop a low-cost electric car model to focus on robotaxi vehicles. After the article, Mr. Musk reacted quite harshly, asserting that this information was false. However, he has not yet provided more specific information about this car model, making investors worried.
Tesla shares have fallen 40,8% this year, clearly reflecting the difficulties the company is facing.
