"Tesla Slashes Prices Globally as Demand Slows, Prepares for Cost Cuts Amid Increased Competition"

Following price cuts in the U.S. market, Tesla has reportedly cut prices in several major global markets, including China and Germany, in response to declining sales and the intensifying electric car price war.

On April 19, Tesla cut the price of Model Y, Model X and Model S by $2,000 in the U.S. On April 20, Tesla also cut the price of its driver-assistance software FSD (Full Self-Driving) from $12,000 to $8,000 in the U.S. Tesla also cut the price of its driver-assistance software FSD from $10,000 to $10,000 in the U.S. on April 21, Tesla's website in China said that the price of Model Y was cut to $8,000 in China.
On April 21, Tesla China's official website showed that Tesla lowered the prices of Model 3, Model Y, Model S, and Model X in China, with all nine versions of the above four models having their prices reduced by 14,000 yuan ($1,930).
The starting price of the Model 3 has been reduced to $231,900 ($32,000); the Model Y has been reduced to $249,900 for the rear-wheel-drive version and $290,900 for the long-range version; the Model S has been reduced to $684,900; and the Model X has been reduced to $724,900.
In the German market, the price of the Tesla Model 3 rear-wheel-drive version was cut to €40,990 ($43,670.75) from €42,990 since February.
A spokesperson for Tesla said the company is also cutting prices in many other countries in Europe, the Middle East and Africa.
"In order to match production with demand, Tesla's prices must change frequently", Tesla CEO Musk said on social media platform X on April 21st. In the first quarter of this year, Tesla reportedly saw its first decline in global vehicle deliveries in almost four years and produced 46,561 more vehicles than it delivered.

A year ago, Tesla kicked off a price war for electric cars by drastically cutting prices at the expense of profit margins. But Tesla has been slow to update its aging models as high interest rates have crippled consumers' appetite for big-ticket items, and it has faced increased competition from Chinese rivals who are launching cheaper models.

Over the weekend, Musk cited work at Tesla as the reason for postponing a planned trip to India, which was also scheduled to meet with Indian Prime Minister Narendra Modi. According to a previous Reuters report, Musk's trip included an announcement of Tesla's plans to enter the Indian market.
Musk also said last week that Tesla will lay off more than 10 percent of its workforce globally. Musk emphasized, "From every aspect of the company, it's extremely important to reduce costs and increase productivity."
This comes on the heels of a Reuters report that Tesla abandoned plans for its highly anticipated affordable electric car in favor of developing self-driving cabs. Musk subsequently posted that "Reuters is lying," but did not point out any inaccuracies. Subsequently, Musk didn't talk further about the car either, which has investors vehemently asking for clarification.

So far this year, Tesla's stock price has fallen a total of 40.8%.