Tesla has reduced prices across several of its major markets — including China, Germany, and the U.S. — in an attempt to counter slowing demand for electric vehicles ahead of a potential recession.
Earlier this month, Tesla’s quarterly deliveries fell year-over-year. The Austin, Texas-based automaker sold 10% fewer Model 3 compact cars and Model Y SUVs, which constitute the majority of its sales.
“Tesla prices have to be adjusted frequently in order to match production to demand,” CEO Elon Musk said.
In China, the automaker has lowered the price of the revamped Model 3 by approximately $1,930, bringing it to $32,000. The Model Y has also seen a similar price reduction.
In Germany, Musk has reduced the price of one Model 3 variant from $45,750 to $43,670.75. In the U.S., Tesla has cut prices for the Model Y SUV, Model X SUV, and Model S sedan by $2,000. The price of Tesla’s Full Self-Driving software has also been reduced by $4,000 amid a push to expand its user data collection; a few days prior, the company had slashed the monthly subscription fee for the software from $199 to $99.
Tesla’s stock price has fallen by over 4% in pre-market trading on Monday, dropping to just over $140 per share, following a series of analyst downgrades. The stock had already hit new 52-week lows last week after analysts lowered their ratings and price targets in light of slowing demand and the departure of several executives.
“The sweeping layoffs announced yesterday, amounting to a reduction in crewed production capacity, should now leave no doubt that the decline in deliveries has been a function of lower demand and not supply,” Dan Ives, an analyst at Wedbush Securities, said.
On Friday, Tesla acknowledged the slow sales of its Cybertruck, revealing that only 3,878 units have been sold since the model first went into production in November.
Tesla will release its full first-quarter results on Tuesday after the market closes. On Saturday, Musk further concerned investors and analysts by postponing his planned visit to India, where the two men were set to announce a major investment by Tesla.
“Unfortunately, very heavy Tesla obligations require that the visit to India be delayed, but I do very much look forward to visiting later this year,” Musk said.
