Tesla cuts EVs prices in response to slowing sales in China, U.S.
Date
4/21/2024 5:26:44 AM
(MENAFN) Facing sluggish sales and mounting inventories, electric car manufacturer Tesla has announced significant price reductions for its vehicles in both China and the United States. The move comes after disappointing sales figures in the first quarter of the year, which have contributed to concerns about inventory levels.
In China, Tesla has lowered the starting price of its popular Model 3 to 231,900 yuan (USD32,000), down from 245,900 yuan previously. Similarly, the price of the Model Y has been reduced to 249,900 yuan (approximately USD34,500) from its previous level of 263,900 yuan. These adjustments aim to make Tesla's electric vehicles more competitive in the Chinese market and stimulate consumer demand.
Meanwhile, in the United States, Tesla has implemented price cuts across its lineup, with the starting price of the entry-level Model Y now set at USD42,990. This reduction brings the SUV's price back to its lowest level ever, as Tesla strives to attract more customers amidst increasing competition. Additionally, the prices of the two higher-tier versions of the Model Y have been decreased by USD2,000, further incentivizing potential buyers.
Tesla's decision to lower prices in its two largest markets underscores the pressures the company is facing amid fierce competition and concerns about declining sales. The electric car market in China, in particular, has become increasingly competitive, with numerous domestic and international manufacturers vying for market share. Consequently, Tesla's shares have experienced a significant decline of more than 40 percent since the beginning of the year, reflecting investor apprehension about the company's sales performance and future prospects.
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