Tesla announced on the 14th that it would cut more than 10% of its global workforce to reduce costs.
Electric carmaker Tesla then lowered the sales price of its three flagship models by $2,000 in the U.S. market, and then cut the sales price of all models in China. Tesla has been struggling in a “price war” with dozens of electric carmakers in the Chinese market.
Tesla said on its official Chinese website that the Model 3 was cut from 245,900 yuan to 231,900 yuan.
The prices of Model Y, Model S, and Model X were also reduced by 14,000 yuan each. The price adjustment came shortly after the price cut in the U.S. market.
Bloomberg reported earlier that Tesla’s U.S. market price cut was attributed to an increase in inventory due to weak sales in the first quarter.
Earlier this month, Tesla said deliveries in the first quarter of this year fell 8.5% from the same period last year to 386,810 units. Marketing to sell to more people by reducing the number of employees and lowering product prices may save the company right now, but in the long run, the company will be unable to operate. In the worst case scenario, the company could vanish. Consumers may be able to buy at lower prices due to ongoing price competition, but the market will collapse. It is necessary to set minimum price limits worldwide so that they do not become a problem.
EJ SONG
US ASIA JOURNAL
