Tesla, led by CEO Elon Musk, has once again reduced prices in major markets such as the US, China, and Germany in response to declining sales. This decision follows a notable decrease in global vehicle deliveries in the first quarter of 2024. As a result, Tesla faces mounting competition in the electric vehicle (EV) sector, particularly from Chinese manufacturers.

The company is set to disclose its financial results for Q1 2024 after the US market closes on Tuesday. Elon Musk emphasized on social media that Tesla's pricing strategy must adapt to fluctuating demand. In China, the starting price of the revamped Model 3 was slashed by 14,000 yuan, while in the US, prices for the Model Y, Model X, and Model S were reduced by $2,000.

Similar price adjustments were made in various other regions across Europe, the Middle East, and Africa. However, Tesla's aggressive pricing tactics have impacted profit margins, especially amid delays in refreshing its product lineup. Meanwhile, competitors in China, including BYD and Nio, have introduced more affordable models. Xiaomi, a Chinese smartphone manufacturer, recently entered the EV market as well. In response to ongoing challenges, Tesla announced workforce layoffs of over 10% globally and postponed Elon Musk's planned visit to India due to company commitments.

Additionally, the company issued a recall for thousands of Cybertrucks due to safety concerns related to accelerator pedal entrapment. Consequently, Tesla's stock has experienced a significant decline of over 40% since the beginning of the year.