Tesla: The electric car giant cuts prices in key markets as sales decline

Tesla has cut its prices again in a number of key markets – including the US, China and Germany – as the electric car giant run by billionaire Elon Musk faces falling sales.

The price war between electric car makers is escalating, with particularly fierce competition from Chinese companies.

Tesla is scheduled to announce its financial results for the first quarter of 2024 after the US market closes on Tuesday.

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

US prices for the Model Y, Model

Price reductions also occurred in many other countries in Europe, the Middle East and Africa, according to Reuters news agency.

BBC News has contacted Tesla for comment.

The company launched an electric vehicle price war more than a year ago when it aggressively cut prices at the expense of profit margins.

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

Over the weekend, Musk said he would postpone a planned trip to India, where he was scheduled to meet Prime Minister Narendra Modi, due to Tesla's “very heavy commitments.”

On Friday, the company recalled thousands of its new Cybertrucks due to safety concerns.

The reason for this is that their accelerator pedals are currently vulnerable to being trapped by the interior trim, which increases the possibility of accidents.

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