Tesla has implemented significant price reductions across key markets such as the U.S., Europe, and China, as a strategic response to diminishing sales figures and an overabundance of inventory. Notably, Tesla’s official website indicates a substantial decrease in the initial price of the updated Model 3 in China by 14,000 yuan ($1,930), now listed at 231,900 yuan ($32,000).

Similarly, in Germany, the automaker has adjusted the pricing of its Model 3 rear-wheel drive variant from 42,990 euros to 40,990 euros ($43,670.75), marking a departure from the price maintained since February.

Moreover, Tesla’s spokesperson has confirmed price revisions in numerous other regions spanning Europe, the Middle East, and Africa, underlining the breadth of this market-driven initiative.

In tandem with these adjustments, Tesla enacted a $2,000 reduction in the prices of its Model Y, Model X, and Model S vehicles within the U.S. market, effective as of last Friday.

These price modifications coincide with Tesla’s recent quarterly report, revealing an 8.5 percent decline in global deliveries during the first quarter, amounting to 386,810 units.

This downturn is attributed to softening demand for electric vehicles and heightened competitive pressures, particularly from lower-priced Chinese rivals, precipitating an escalating price rivalry within the EV sector.

Tesla’s sluggish pace in refreshing its ageing models is partly attributed to prevailing high-interest rates, which have subdued consumer inclination toward significant purchases, further complicating the company’s strategic maneuvers in the current market landscape.