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  • Voltaire Staff

Tesla slashes car price as EV war gets intense

Electric car giant Tesla has slashed its prices in several key markets, including the US, China, and Germany, in response to declining sales.

The decision follows a significant drop in global vehicle deliveries during the first quarter of this year.

Tesla is set to announce its financial results for the first quarter of 2024 after the US market closes on Tuesday.

In a post on X, multi-billionaire Elon Musk, who leads the firm, wrote, "Other cars change prices constantly and often by wide margins via dealer markups and manufacturer/dealer incentives. Only a fool thinks the 'MSRP' is the real price. Tesla prices must change frequently in order to match production with demand."

A battle over prices is heating up among electric vehicle makers, especially from Chinese companies.

Tesla implemented price reductions in several European, Middle Eastern, and African countries.

Over a year ago, the company initiated an EV price war by drastically reducing prices, albeit at the cost of profit margins. While competitors in China like BYD and Nio have been introducing more affordable models, Tesla has been slow to update its older models.

Additionally, Chinese smartphone manufacturer Xiaomi recently entered the EV market with its debut vehicle. In response to various challenges, Tesla disclosed plans last week to cut over 10 per cent of its global workforce.

Musk has also postponed his visit to India, which was scheduled from April 21-22, to "later this year" owing to "Tesla obligations."


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