Photo by Tesla Fans Schweiz on Unsplash
Tesla Slashes Prices in US, China, and Germany To Battle Rising Competition
April 23, 2024
Following significant price cuts in the U.S., Tesla has revealed that similar reductions will be applied in China and Germany as well. This decision comes as the electric vehicle (EV) manufacturer faces challenges with decreasing sales and heightened competition in key global markets.
The automobile giant’s recent price reductions are part of a continued effort going back to early last year to sustain demand at a time of increased competition from traditional automakers’ EV offerings and rising interest rates. These factors have made car purchases more expensive for many consumers. However, these ongoing price adjustments have put pressure on Tesla’s profit margins and played a key part in a 4% drop in its stock during Monday’s trading session. The company plans to release its first-quarter earnings report after today’s trading hours.
Over the weekend, Tesla reduced the initial starting prices of four models available in mainland China, its largest international market, by 14,000 yuan ($1,932). This includes the Model Y, Tesla’s best-selling vehicle in the country, which now starts at its most affordable price ever of 249,900 yuan ($34,502).
According to information on its official website, Tesla’s largest market in Europe, Germany, saw a drop in the price of its Model 3 rear-wheel drive by 2,000 euros ($2,132) to 40,990 euros ($43,707).
On Friday, the initial price cuts were announced in the U.S., with Tesla reducing the prices of three out of its five models. The Model Y, Model X, and Model S saw reductions of $2,000 each, while prices for the Model 3 and Cybertruck were kept the same.
The rapid price reduction comes during a challenging time for Tesla. Its stock has plummeted over 40% in comparison to the same time last year after the company revealed a drop in quarterly deliveries for the first time in nearly four years and after it announced layoffs of more than 10% of its global staff.
Additionally, Tesla’s CEO Elon Musk said on Saturday that he had pushed back his scheduled trip to India to meet with Prime Minister Narendra Modi to build a factory in the region due to “very heavy” commitments at the company.
Recent News
Massive Data Breach Hits Ticketmaster, Affecting 560 Million Customers
Ticketmaster has fallen victim to a significant cyber-attack, potentially compromising the data of up to 560 million customers. The breach was confirmed by Ticketmaster’s parent company, Live Nation, which revealed that a notorious hacking group, ShinyHunters, is behind the attack. The hackers are demanding a ransom of approximately £400,000 to prevent the data from being sold on the dark web.
Toyota Recalls 100,000+ Tundra and Lexus LX SUVs Over Engine Debris Issue
Toyota has announced a recall for over 100,000 Tundra pickups and Lexus LX SUVs in North America due to potential engine issues caused by machining debris. This recall affects certain 2022-2023 models of the Tundra and LX, which are equipped with the new V6 twin-turbo engine. The V6 twin-turbo engine has faced considerable scrutiny regarding its reliability, especially when compared to the previous naturally aspirated V8 engines.
Wordle and Worldle Battle Over Names
A legal dispute has erupted between the wildly popular word game Wordle and the lesser-known geography game Worldle, centering on the similarity of their names. Wordle, which was developed by Josh Wardle in 2021 and later acquired by the New York Times in 2022 for a substantial sum, has gained immense popularity. In this game, players have six attempts to guess a five-letter word.
FDA Issues Recall for Crecelac Goat Milk Infant Formula
The U.S. Food and Drug Administration (FDA) has issued a safety alert regarding Crecelac Goat Milk Infant Formula and other infant formula products imported and distributed by Dairy Manufacturers Inc. The alert highlights Cronobacter contamination concerns with Crecelac Infant Powdered Goat Milk Infant Formula. Although Dairy Manufacturers Inc. initiated a recall on May 24, 2024, due to non-compliance with FDA regulations, new findings of Cronobacter contamination have prompted further action.