Written by Hyun Joo Jin and Ethan Wang
BEIJING (Reuters) – Following price cuts in the U.S., Tesla will reduce the price of all its models by 2,000 in China in a bid to deal with declining sales of electric vehicles (EVs) and intensifying price competition, especially from cheaper Chinese EVs. The price has dropped by almost $100.
Elon Musk’s EV maker has cut the starting price of the updated Model 3 in China by 14,000 yuan ($1,930) to 231,900 yuan ($32,000), the company’s official website said on Sunday. revealed.
Tesla has similarly reduced the starting price of the Model Y to 249,900 yuan, the regular version of the Model S to 684,900 yuan, and the Model S Plaid to 814,900 yuan. The regular Model X costs 724,900 yuan, and the plaid model costs 824,900 yuan.
The automaker on Friday reduced the U.S. price of the Model Y, Model X and Model S by $2,000. On Saturday, the company lowered the price of its fully self-driving driver assistant software in the U.S. from $12,000 to $8,000.
Tesla reported this month that its first-quarter global car deliveries fell for the first time in nearly four years as price cuts failed to stimulate demand.
While rival companies are introducing lower-priced models in China, the world’s largest automobile market, the company has been slow to update its aging models as high interest rates reduce consumer appetite for expensive products. .
Musk postponed his planned trip to India this weekend to meet Prime Minister Narendra Modi, citing his Tesla obligations. The visit was also expected to include an announcement of Tesla’s plans to enter the South Asian market, Reuters reported on Saturday.
Musk announced last Monday that Tesla would lay off more than 10% of its global workforce as it braces for its first annual drop in car deliveries.
The announcement comes after Reuters reported on April 5 that Tesla had scrapped plans to develop its long-awaited affordable electric vehicle in favor of robotaxis. After the report, Musk wrote, “Reuters is lying,” without mentioning the inaccuracies. He has not said more about the model, and investors are seeking clarity.
Tesla stock has fallen 40.8% since the beginning of the year.
Starting in late 2022, Tesla triggered a price war as Musk sought to increase sales volume at the expense of margins.
(1 dollar = 7.2403 Chinese Yuan)
(Reporting by Ethan Wang, Bernard Orr, Hyun-joo Jin; Editing by Michael Perry and William Mallard)
