For example, in Germany, the price of model 3 decreased by 2,000 euros. With its previous price cuts, Tesla has started a price war in the electric car market.
Electric car manufacturer Tesla has lowered its prices in several main market areas, such as China, the United States and Germany.
In the United States, the prices of models S, Y, and X decreased by 2,000 dollars, or 1,875 euros. In China, on the other hand, the price of the renewed model 3 decreased by 14,000 yuan, or 1,813 euros. In Germany, the price of the same model fell by 2,000 euros.
Managing director Elon Musk justified the decision by saying that Tesla needs to adapt its production volumes to market demand.
The background is increasing competition in the electric car market. In particular, several models more affordable than Tesla have come to the market from China, at the same time Tesla has been criticized for itthat it does not update its models enough.
About a year ago, Tesla significantly lowered its prices and started a price war in the market, according to many experts.
Financial media according to Bloomberg the recent price drop will cause a new price war, at least in China.
Tesla said a week ago that it will lay off up to ten percent of its 140,000 employees worldwide.
The electric car manufacturer’s share price has fallen by about 40 percent since the beginning of the year.
Although the number of cars produced by Tesla has increased, China’s Byd overtook Tesla as the world’s largest electric car manufacturer in the last quarter of last year.