Tesla, the electric vehicle (EV) manufacturer, slashed prices by nearly $2,000 across its models in China, following similar price cuts in the United States, as the company faces declining sales and a growing price war against less expensive Chinese EVs, Reuters reported on Sunday. The starting price of Tesla's revamped Model 3 in China has been reduced by 14,000 yuan ($1,930) to 231,900 yuan ($32,000), as shown on its official website on Sunday. Similar price reductions have been made for the Model Y, now priced at 249,900 yuan, the regular version of the Model S at 684,900 yuan, and the Model S Plaid at 814,900 yuan. The regular Model X is now priced at 724,900 yuan, with its Plaid variant at 824,900 yuan. On Friday, Tesla cut the US prices of its Model Y, Model X, and Model S vehicles by $2,000. On Saturday, it reduced the price of its Full Self-Driving driver assistant software from $12,000 to $8,000 in the United States. Tesla reported earlier this month that its global vehicle deliveries in the first quarter dropped for the first time in nearly four years, as the price cuts did not boost demand. The company has been slow to update its older models due to high interest rates dampening consumer interest in expensive items, while its competitors in China, the world's largest auto market, are introducing cheaper models. Musk announced last Monday that Tesla will lay off more than 10 per cent of its global workforce as the company prepares for its first annual drop in deliveries. Tesla have plummeted 40.8 per cent this year amidst a price war sparked by Musk's late 2022 strategy shift prioritising volume growth over profit margins.
