Tesla, led by multi-billionaire Elon Musk, has once more reduced its prices in several key markets, such as the US, China, and Germany, amidst declining sales of the electric car company.
This decision follows a significant decline in global vehicle deliveries during the first quarter of this year.
An escalating price competition among electric vehicle (EV) manufacturers, notably driven by Chinese firms, has been observed.
Tesla is scheduled to announce its financial results for the first quarter of 2024 after the close of the US market on Tuesday.
In a post on social media platform X, formerly Twitter, Mr Musk said: “Tesla prices must change frequently in order to match production with demand.”
In China, the company lowered the initial price of the updated Model 3 by 14,000 yuan (£1,562) to 231,900 yuan.
On Friday, prices for the Model Y, Model X, and Model S vehicles in the US were reduced by $2,000 (£1,616).
According to Reuters, the news agency, there were also price reductions across numerous other countries in Europe, the Middle East, and Africa.
BBC News has reached out to Tesla for a comment.
Over a year ago, the company initiated an electric vehicle (EV) price competition by significantly reducing prices, albeit at the cost of profit margins.
While competitors in China like BYD and Nio have swiftly introduced more affordable models, Tesla has been sluggish in refreshing its aging lineup. Additionally, Chinese smartphone manufacturer Xiaomi entered the EV market last month with its inaugural model.
Recently, Tesla unveiled intentions to reduce its global workforce by more than 10%.
Elon Musk announced over the weekend that he would delay his scheduled visit to India, where he was set to meet Prime Minister Narendra Modi, citing “very heavy Tesla obligations.”
On Friday, the company issued a recall for thousands of its new Cybertrucks due to safety issues.
The recall is prompted by concerns that the accelerator pedals could become trapped by the interior trim, heightening the risk of accidents.
Since the beginning of this year, Tesla’s shares have declined by over 40%.