Electric car company Tesla lowered the sales prices of its three flagship models by $2,000 each in the U.S. market and then dropped the sales prices of all models in China.
According to Tesla’s official Chinese website on the 21st, the Model 3 price was reduced from $39,000 to $36,800, a decrease of $2,200.
The prices of Model Y, Model S, and Model X also fell by 14,000 yuan each to $39,700, $108,800, and $115,100, respectively.
This price adjustment was made shortly after the price reduction in the U.S. market. Bloomberg News reported that the price drop was due to an increase in inventory due to sluggish sales in the first quarter.
Earlier this month, Tesla announced that its first-quarter delivery (sales) volume fell 8.5% from last year to 386,810 units.
Additionally, on the 14th, it announced its plan to lay off more than 10% of the workforce at its global business locations to cut costs. Two high-level executives were also included in this round of job cuts.
Tesla’s stock price fell for six consecutive trading days from the 12th to the 19th, reaching its lowest point in 15 months ($147.05). So far this year, the stock price has fallen by 40.81%.
Tesla has faced difficulties in China, where dozens of electric vehicle companies are in a price war.
The Chinese media Securities Times reported that despite other Chinese electric vehicle companies continually lowering their prices, Tesla announced earlier this month that they would increase the cost of the Model Y by $781.25. The report stated, “In the global competition for new energy vehicles, Tesla couldn’t hold out even a month after mentioning the price increase.”
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