Tesla, Inc. (TSLA), once the world leader in the electric vehicle (EV) sphere, has reportedly cut prices in several of its major markets, including Germany and China.
Tesla Cuts Prices In Major Markets
Elon Musk
This comes after earlier price cuts in the US in the wake of tougher competition, especially since BYD, the Chinese EV maker, overtook Tesla as the foremost EV company globally. Earlier this month, the company’s Q1 financials reflected a drop in global vehicle deliveries – the first in approximately four years. Elon Musk, Tesla’s co-founder and CEO, took to his social media platform X and posted:
Tesla prices must change frequently in order to match production with demand.
According to Reuters, Tesla sparked an EV pricing war when it drastically cut prices more than a year ago. In China, the starting price for a revamped Model 3 dropped by 14,000 CNY to 231,900 CNY. A Model 3 rear-wheel-drive now costs €40,990 instead of €42,990.
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On Friday, 19 April 2024, Tesla cut the prices of its Model Y, Model X and Model S EVs by $2,000 in the US. Based on Reuters information, Musk postponed a trip to India, which allegedly included plans to announce Tesla’s entry into this market.
Meanwhile, Yahoo Finance reported that Tesla reached out to shareholders to vote for the reinstatement of Musk’s $56bn remuneration package at a meeting scheduled for 13 June 2024. The Delaware Chancery Court reportedly rejected claims previously supporting this exorbitant pay scheme. Reuters indicated that TSLA stock has fallen by 40.8% since the start of 2024.
