Tesla has reduced its prices in major markets, including China and Germany, following similar actions in the United States. This move comes amidst declining sales and increasing competition in the electric vehicle (EV) market, particularly from Chinese EV manufacturers. The change was made just a couple of days after Tesla CEO Elon Musk deferred his visit to India where he was expected to make major announcements in relation to the EV-maker.
The company reported a decrease in global vehicle deliveries for the first quarter, the first such drop in nearly four years. Musk stated that Tesla's prices need to fluctuate to align production with demand.
The price of the revamped Model 3 in China was reduced by 14,000 yuan, and in Germany, the Model 3 rear-wheel-drive's price was cut to 40,990 euros. Price reductions were also implemented in other countries in Europe, the Middle East, and Africa. In the US, the prices of Model Y, Model X, and Model S vehicles were cut by $2,000, and the cost of the Full Self-Driving driver assistant software was reduced to $8,000.
Tesla has been slow to update its models due to high interest rates impacting consumer buying power, while its competitors in China are introducing cheaper models. Musk cancelled a trip to India where he was to meet Prime Minister Narendra Modi and announce plans for Tesla's entry into the South Asian market. The company is also planning to lay off more than 10% of its global workforce in anticipation of its first annual drop in deliveries.
Elon Musk Deferrs Visit to India
Elon Musk was expected to visit India on April 21-22. However, the visit was postponed one day ahead of his visit. Musk attributed the delay to 'very heavy Tesla obligations'. This announcement comes just days after Musk confirmed his plans to meet with Prime Minister Narendra Modi during his visit, reportedly to finalize Tesla’s entry into the Indian market.
The central government’s recent introduction of a new Electric Vehicle (EV) policy has sparked speculations of Tesla’s arrival in India. The policy mandates global companies eyeing the Indian EV market to invest a minimum of Rs 4,150 crore (approximately USD 500 million) to establish electric vehicle manufacturing plants within the country.
Musk’s visit to India is highly anticipated as it is expected to pave the way for Tesla’s official entry into the Indian market. However, he expressed his eagerness to visit India at a later date, indicating that the visit may be rescheduled for later in the year.
It was also reported that Tesla officials were exploring potential sites in India for a manufacturing plant, which is anticipated to necessitate an investment of approximately USD 2 billion. This move followed India’s announcement of a policy aimed at reducing high tariffs on imported cars, incentivizing companies to invest locally. The world now eagerly awaits Musk’s rescheduled visit and the potential impact it could have on the Indian EV market. Stay tuned for more updates on this developing story.