In the fight against weak demand, the US electric car manufacturer Tesla reduced its prices again. In China Most Tesla models have become around $2,000 cheaper, according to information on the car manufacturer’s official website on Sunday. Price reductions of a similar amount were already announced late on Friday evening (local time). USA known. On Saturday, Tesla also lowered the price of its Full Self-Driving driver assistance software in the USA to $8,000 from the previous $12,000.
The move comes at the end of a week in which Tesla shares fell below the $150 mark and the price gains achieved last year were lost again. Tesla shares have lost around 40 percent this year.
Specifically, Tesla boss lowered Elon Musk the starting price for the revised Model 3 in China increased by 14,000 yuan ($1,930) to 231,900 yuan ($32,000). Tesla made similar price cuts for the Model Y, which now costs 249,900 yuan. Tesla is also granting significant price discounts in China for the Model S, the Model S Plaid and the Model X.
The global market is currently weakening Electric cars. Tesla started the year with a significant decline in sales. It was the first time in almost four years that the company sold fewer vehicles than a year ago. Previous price cuts had clearly not been able to drive up demand as desired. Above all, the cheaper Chinese competition is causing problems for Tesla. The Chinese provider BYD is hot on Tesla’s heels. In addition, there is tougher competition from newcomers to the industry and the growing range of electric cars from established manufacturers such as VW.
In view of the latest news, Musk is facing skepticism from investors, especially since a cheaper model is still a long time coming. There could be more clarity when quarterly figures are presented on Tuesday.
Tesla announced just over a week ago that it would cut more than one in 10 jobs worldwide as the automaker braces for its first annual decline in deliveries. At the same time, however, the car manufacturer would like to make another attempt to implement the $56 billion compensation program for Elon Musk. A judge had previously declared this program invalid.