Electric vehicle (EV) automaker Tesla has cut prices in its Chinese, German, and various other markets to counteract declining EV sales globally, and a subsequent price war with Chinese EVs. This follows from cuts the company made on its US vehicles, as well as global workforce layoffs.
Tesla CEO Elon Musk announced earlier this month that the company’s global vehicle deliveries in the first quarter fell for the first time in almost four years. Sales of electric vehicles declined all across Europe last month, with nearly every major EV supplier reporting a drop-off in public interest in the “eco-friendly” alternatives. The decrease in EV purchases, reflected in the American market as well, comes despite efforts by the European Union to ban all gas- and diesel-powered cars by the mid-2030s.
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The company cut the base price of its revamped Model 3 in China by 14,000 yuan ($1,930) to 231,900 ($32,000) according to its website. Similarly, in Germany the Model 3 rear-wheel-drive was trimmed to 40,990 euros ($43,670.75) from 42,990 euros.
“Tesla prices must change frequently in order to match production with demand,” Musk reportedly said on X Sunday in a now-deleted post.
There were many similar price cuts in other countries throughout Europe, the Middle East, and Africa, according to a Tesla spokesperson. On Friday, Tesla cut its US Model Y, Model X, and Model S vehicles by $2,000. It cut the US price of its self-driving software to $8,000 from $12,000.
In a move that could perhaps seem desperate for more attention in Chinese markets, Musk reposted a post from Tesla Asia thanking its Chinese customers for their support.
Celebrating 10 years since the first-ever delivery of Tesla Model S in China—thanks to our 1.7 million Chinese owners, our partners, supporters and industry advocates. Together, let's accelerate the world's transition to sustainable energy! ❤️
特斯拉中国首批车主交付十周年… https://t.co/Hf0aXK8KeP
— Tesla Asia (@Tesla_Asia) April 22, 2024
As Valuetainment reported last week, Tesla announced it would be culling more than 10 percent of its global workforce, with Musk citing cost cutting and productivity enhancement as main drivers of the decision.
“As part of the effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10 percent globally,” he said. “There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle.”
Shane Devine is a writer covering politics and business for VT and a regular guest on The Unusual Suspects. Follow Shane’s work here.
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