Tesla: EV giant cuts prices in major markets as sales fall

Tesla has the cut its prices again in a number of major markets – including the US, China and Germany – as the electric car giant run by multi-billionaire Elon Musk faces falling sales.

A price war has been intensifying between electric vehicle (EV) makers, with particularly fierce competition coming from Chinese firms.

Tesla is due to report financial results for the first quarter of 2024 after the US market close on Tuesday.

In China, the firm cut the starting price of the revamped Model 3 in China by 14,000 yuan ($1,934; £1,562) to 231,900 yuan.

Prices of the Model Y, Model X and Model S vehicles in the US were cut by $2,000 (£1,616) on Friday.

There were also price cuts in many other countries in Europe, the Middle East and Africa, according to the Reuters news agency.

Tesla ignited an EV price war over a year ago when it aggressively cut prices at the expense of profit margins.

The firm has been slow to refresh its ageing models while rivals in China, such as BYD and Nio, have been rolling out cheaper models. Chinese smartphone maker Xiaomi also launched its first EV last month.

Over the weekend, Mr Musk said he would postpone a planned trip to India, where he was due to meet Prime Minister Narendra Modi, due to “very heavy Tesla obligations”.

On Friday, the firm recalled thousands of its new Cybertrucks over safety concerns.

It is because their accelerator pedals currently risk getting trapped by the interior trim, increasing the possibility of crashes.

Tesla’s shares have fallen by more than 40% since the start of this year.