Tesla slashes prices across the world amid falling sales and increased competition

Tesla has recently cut the prices of a number of its car models in various key markets as it battles with falling demand and increased competition within the electric vehicle (EV) industry.

On Friday, the company, led by billionaire Elon Musk, cut the prices of the Model Y, Tesla’s most popular model, as well as its Model X and Model S, the older and more expensive models in the US. The prices of the Model 3 sedan and the Cybertruck remained consistent.

The cuts saw the starting price for a Model Y drop to $42,990 (€40,358) and those of the Model S and Model X fall to $72,990 (€68,521) and $77,990 (€73,215), respectively. These price falls were also followed by additional cuts to the US price of its “Full Self-Driving” driver assistant software, with this going from $12,000 (€11,265) to $8,000 (€7,510).

On Sunday, the carmaker continued slashing prices, this time in China and Germany, with the price for the Model 3 in China going down by 14,000 yuan (€1,851) to 231,900 yuan (€30,662). This was also the case in Germany, where the price for the Model 3 rear-wheel drive dropped from €42,990 to €40,990.

Additionally, a spokesperson for Tesla told international media that there were also price cuts in many other countries in Europe, the Middle East, and Africa.

The series of price cuts comes after the company, earlier this month, reported a fall in its global vehicle deliveries for the first time in almost four years.

Taking to X on Sunday, Mr Musk remarked: “Other cars change prices constantly and often by wide margins via dealer markups and manufacturer and dealer incentives.”

“Tesla prices must change frequently in order to match production with demand,” he added.

The price cuts come after a chaotic week for Tesla, with a drop in share price, together with it stating that it will be cutting 10 per cent of its staff globally, the equivalent of around 14,000 jobs. Tesla also had to recall all its Cybertrucks on Friday due to a faulty accelerator pedal.

Earlier this year, Tesla had promised to halve the production costs of the next generation of its EVs, with Mr Musk stating that lower prices would be key for the company to achieve its goals.