Tesla has recently slashed prices in key markets like China and Germany, mirroring similar actions taken in the United States. This adjustment comes as Tesla grapples with declining sales and heightened competition within the electric vehicle (EV) sector, particularly from Chinese EV manufacturers. The price cuts were announced shortly after Tesla CEO Elon Musk postponed his trip to India, where significant EV-related announcements were anticipated.
In response to a global decline in vehicle deliveries for the first quarter—marking the first such dip in almost four years—Musk emphasized the need for Tesla’s pricing to adapt to fluctuations in demand to align with production, Business Today reported.
Specifically, the price of the updated Model 3 in China was reduced by 14,000 yuan, while in Germany, the price of the Model 3 rear-wheel-drive model dropped to 40,990 euros. Similar reductions were also implemented in other regions, spanning Europe, the Middle East, and Africa. In the US, Tesla lowered the prices of its Model Y, Model X, and Model S vehicles by $2,000, alongside reducing the cost of the Full Self-Driving driver assistance software to $8,000.
Tesla’s slower model updates have been attributed to high interest rates affecting consumer purchasing power, while Chinese competitors have been rolling out more affordable models. Additionally, Musk’s cancellation of his India visit—originally intended for discussions with Prime Minister Narendra Modi and unveiling Tesla’s market entry plans—aligns with the company’s preparation for its first annual decline in deliveries.
Elon Musk’s postponed visit to India, initially scheduled for April 21-22, was attributed to “very heavy Tesla obligations.” This decision followed his confirmation of plans to meet with Prime Minister Modi to finalize Tesla’s entry into the Indian market.
The recent introduction of India’s new Electric Vehicle (EV) policy has spurred speculation about Tesla’s entrance into the Indian market, requiring global companies to invest a minimum of Rs 4,150 crore (approximately USD 500 million) in local EV manufacturing plants. Tesla officials have reportedly been exploring potential manufacturing sites in India, with an estimated investment of USD 2 billion, in response to India’s efforts to reduce tariffs on imported cars and incentivize local investment.
Musk’s rescheduled visit to India holds significant anticipation for Tesla’s official debut in the Indian EV sector, with industry watchers eagerly awaiting further developments.
