Tesla Slashes Prices in Key Markets Amid Declining Sales

As the electric car giant run by multi-billionaire Elon Musk faces decline in sales,tesla has cut its prices in a number of major markets, including the US, China and Germany.

This is coming after there was a report of a sharp fall in its global vehicle deliveries in the first three months of this year.

Competition among electric vehicle manufacturers, especially from Chinese companies, has escalated, sparking a price war. 

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

In a post on social media platform X, formerly Twitter, Mr Musk said: "Tesla prices must change frequently in order to match production with demand."

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

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

There were also reduction in price in many other countries in Europe, the Middle East and Africa.

The company triggered 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.

Last week, Tesla announced plans to lay off more than 10% of its global workforce.

Mr. Musk announced over the weekend that he would delay his scheduled visit to India, where he was supposed to meet Prime Minister Narendra Modi, citing "very heavy Tesla obligations." 

On Friday, the company issued a recall for thousands of its new Cybertrucks due to safety concerns. The recall was prompted by the risk of accelerator pedals becoming trapped by the interior trim, heightening the potential for accidents. Tesla's shares have declined by over 40% since the beginning of the year.