Tesla lowers prices (again) to regain market share

After posting its worst quarter results in five years, Tesla is lowering its pricing in China, the US, and Europe to fight its way back in the sales charts. This is part of a series of measures to defy the declining market for battery-powered vehicles. Customers can now save around 2,000 euros on most models.

Tesla saw deliveries reverse by 9% during the first three months. The increased inventory shows that slowing demand, rather than external factors, is to blame. As it has done many times before, Tesla has reacted by globally slashing its prices, including the Model Y, the best-selling car in the world, and the Model 3, whose retail prices dwindled by 2,000 euros.

End of referral program

In its home market, the EV maker now offers its Full Self-Driving software (FSD) for 8,000 dollars (instead of 12,000 dollars), which represents its most advanced version of automated driving, which is not available in this guise in Europe. The company is also slashing its referral program, which grants its customers benefits, points, and special prizes when they bring in new customers.

In China, where the price war and competition battle are peaking as never before, the Model 3 now costs roughly 30,000 euros. In the US, the cheapest version of the Model Y—pricing of the Model 3 remains unaltered in its home market—is back at its lowest level, costing 42,990 dollars (40,300 euros). Still, none of the Belgian retail prices are eligible for the Flanders government incentive, as the cheapest version, the rear-wheel-driven Model 3, still costs 41,980 euros.

Faulty accelerator recall

The heat is rising at Tesla as headwinds appear from all sides. The company’s declining results have caused it to fire 14,000 of its global workforce. The company also recalls 3,900 Cybertrucks over problems with the accelerator, which might get loose, adding to previous problems like accelerated rusting.

Reportedly, new orders for Cybertrucks have been stalled or delayed. Elon Musk’s prestige project is piling up failures.

The worries have grown to the point that CEO Elon Musk canceled his business trip to India. He was to meet with minister-president Narendra Modi to construct a new factory and eye the local market. Musk said that obligations caused him to reschedule the meeting “later this year”.