With sales falling and the stock of unsold cars growing, Elon Musk has pushed prices back down.
Amid declining sales and excess inventory, Tesla has implemented price cuts across its key US, Europe and China markets.
According to its official website, the starting price of the Model 3 in China has been reduced by $1,930. In Germany, Tesla adjusted the rear-wheel drive Model 3 price to 40,990 euros (previously 42,990 euros).
In Greece, the price of the basic rear-wheel drive Model 3 fell by 2,000 euros, from 41,990 euros to 39,990 euros, and the Dual Motor dropped from 49,990 euros to 47,990 euros.
According to a Tesla spokesperson, these adjustments reflect the broader price reductions in various European countries, the Middle East, and Africa.
In the US, Tesla instituted price cuts of $2,000 on its Model Y, Model X and Model S vehicles, effective Friday.
These adjustments come in response to Tesla's recent announcement that its global sales for the first quarter fell 8.5% to 386,810 units. The decline was attributed to weakened demand for electric vehicles and increased competition, particularly from more affordable Chinese alternatives.
Sluggish consumer interest in large purchases and rising interest rates have exacerbated Tesla's reluctance to refresh its aging models.
Additionally, Tesla has cut the price of its driver assistance software, Full Self-Driving (FSD), by a third to $8,000 in the US.
Despite facing challenges in achieving fully autonomous driving amid regulatory scrutiny, Elon Musk remains bullish on the technology's revenue.
Tesla's strategic changes include abandoning plans for a low-cost vehicle in favour of a focus on the robotic axle, a move that has drawn mixed reactions from investors.
In addition, Tesla announced layoffs amounting to more than 10 percent of its workforce while seeking shareholder approval for a $56 billion compensation package for Musk that a Delaware court previously struck down.
Concerns about declining sales, increased competition in China and Musk's ambitious robot taxi plans have sent Tesla's stock down more than 40% this year.
As Tesla prepares to report first-quarter earnings on April 23, its trajectory and strategic decisions continue to attract significant attention and scrutiny from investors and industry watchers alike.
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