by Hyunjoo Jin and Ethan Wang
BEIJING (Reuters) – Tesla has reduced the prices of its models by almost 2,000 dollars (around 1,870 euros) in China, after having lowered them in the United States, as it faces a decline in sales and an intensification of the price war for electric vehicles (EV), particularly against cheaper Chinese models.
The automaker reduced the starting price of the revamped Model 3 in China by 14,000 yuan ($1,930) to 231,900 yuan ($32,000), its official website showed Sunday.
Tesla made similar reductions on the starting price of Model Y to 249,900 yuan, the regular Model S to 684,900 yuan, and the Model S Plaid to 814,900 yuan. . The base Model X now costs 724,900 yuan and its Plaid variant 824,900 yuan.
The American company has also lowered its prices in Europe – in Germany in particular – in the Middle East and in Africa, according to a spokesperson for the group.
In Germany, the price of the Model 3 increased from 42,990 euros to 40,990 euros.
In the United States, the car manufacturer also reduced the price of its Model Y, Model dollars previously.
Tesla this month reported first-quarter global deliveries falling for the first time in nearly four years as price cuts failed to boost demand.
The electric vehicle maker has been slow to renew its aging models as high interest rates have sapped consumers’ appetite for big purchases, while rivals in China, the world’s largest auto market, launch models cheaper.
Last Monday, Elon Musk announced that Tesla would lay off more than 10% of its workforce worldwide.
Tesla stock has fallen 40.8% since the start of the year.
(Reporting Ethan Wang, Bernard Orr, Hyunjoo Jin and Chris Steitz; French version Kate Entringer and Zhifan Liu)
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