Tesla extends price cuts to major markets globally
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The news: Tesla has cut prices in major markets including China and Germany to follow cuts announced in the US as it grapples with falling sales and an intensifying price war for electric vehicles.
The numbers: Tesla cut the starting price of its revamped Model 3 in China by 14,000 yuan ($3,073) to 231,900 yuan, its website showed. In Germany, the carmaker trimmed the price of its Model 3 rear wheel drive to €40,990 ($68,111) from €42,990. There were also price cuts in many other countries in Europe, the Middle East and Africa.
The context: The swathe of price cuts comes after the EV maker earlier this month reported a decline in first quarter global vehicle deliveries for the first time in nearly four years.
The carmaker cut US prices of its Model Y, Model X and Model S vehicles by USD2,000 ($3,117) last week. Tesla has been slow to refresh its ageing models as high interest rates have sapped consumer appetite for big-ticket items, while rivals in China, the world's largest auto market, are rolling out cheaper models.
CEO Elon Musk said last week Tesla will lay off more than 10% of its global workforce as the automaker braces for its first annual drop in deliveries.
The source: Reuters
