Tesla: EV giant cuts prices in major markets as sales fall

Tesla has cut prices again in a number of major markets – including the United States, China and Germany – as the electric car giant led by multi-billionaire Elon Musk faces falling sales.

The price war is intensifying between electric vehicle (EV) manufacturers, with particularly fierce competition from Chinese companies.

Tesla is expected to report its financial results for the first quarter of 2024 after the U.S. market closes on Tuesday.

In China, the company has cut the starting price of the facelifted Model 3 by 14,000 yuan (£1,562) to 231,900 yuan.

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

Price cuts also took place in many other countries in Europe, the Middle East and Africa, according to the Reuters news agency.

BBC News has contacted Tesla for comment.

The company started an electric vehicle price war more than a year ago by aggressively cutting prices at the expense of profit margins.

The company has been slow to refresh its aging models, while competitors in China, such as BYD and Nio, have rolled out cheaper models. Chinese smartphone maker Xiaomi also launched its first electric vehicle last month.

Over the weekend, Mr Musk said he would postpone his planned trip to India, where he was due to meet Prime Minister Narendra Modi, due to Tesla’s “very onerous obligations”.

The company recalled thousands of its new Cybertrucks on Friday over safety concerns.

Indeed, their accelerator pedals currently risk getting stuck in the interior trim, thus increasing the risk of accidents.

Tesla shares have fallen more than 40% since the start of this year.