Amid Job Cuts, Declining Sales And Postponed Trips, Tesla Slashes Prices Globally

Tesla reduced prices across its vehicle lineup worldwide in response to dwindling sales.

The price cuts follow Tesla's recent announcement that its global vehicle deliveries in the first quarter experienced a decline for the first time in nearly four years.

The leading electric vehicle manufacturer has implemented significant price reductions for its revamped Model 3 in various regions.

In China, the starting price of the Model 3 has been slashed by 14,000 yuan ($1,930) to 231,900 yuan ($32,000), as indicated on the company's official website on Sunday.

Similarly, in Germany, the price of the Model 3 rear-wheel-drive variant has been lowered to 40,990 euros ($43,670.75) from its previous price of 42,990 euros, which had been in effect since February.

Tesla has also initiated price cuts in other European countries, the Middle East, and Africa, according to a spokesperson for the company.

The global cuts come after Tesla cut prices in the U.S. for three of its top-selling vehicles, the Model X, Model Y, and Model S. They were each slashed by $2,000.

However, the price of the Model 3, remained unchanged in U.S.

The Model Y, a compact SUV, retains its position as the company's top-selling vehicle and the most sought-after electric car in the U.S. After factoring in federal tax credits and anticipated fuel savings, the starting price for a Model Y now stands at just below $30,000, Tesla has said.

On Saturday, Tesla also cut price of its Full Self-Driving driver assistance software in the U.S., reducing it to $8,000 from $12,000.

Over the weekend, Tesla CEO Elon Musk postponed his scheduled visit to India, where he was set to meet with Prime Minister Narendra Modi. Musk cited commitments at Tesla as the reason for the delay. Reuters reported that the trip was intended to coincide with the announcement of Tesla's plans to enter the South Asian market.

Last week, Musk disclosed that Tesla would be reducing its global workforce by more than 10%.

The company had also reportedly abandoned plans for a value-focused Model 2 priced at approximately $25,000.

Tesla's stock has experienced a sharp decline in recent weeks, plummeting by 40% since the beginning of the year. On Friday, the stock price dipped below $150 per share, marking a significant decrease from the company's peak last July when it was valued at nearly twice its current value.

The company is set to unveil its complete quarterly earnings report on Tuesday. Last week's sales data already indicated a notable downturn, marking Tesla's first year-over-year quarterly sales decline in four years.