In response to declining sales, Elon Musk’s Tesla has again cut its prices in major markets including the US, China, and Germany. There were also price cuts in other European, Middle Eastern, and African countries.
The firm reported a steep fall in vehicle deliveries in the first quarter of this year.
This move comes amid a brewing price war between electric vehicle makers and intense competition from Chinese manufacturers.
The company will release its first quarter financial report as soon as the US market closes on Tuesday.
Admitting the move, Mr Musk said on his X platform that: “Tesla prices must change frequently to match production with demand.”
In China, prices of the revamped Model 3 were cut by 14,000 yuan while the prices of the Model Y, X, and S vehicles in the US were reduced by about $2,000 last Friday.
On the same day, it recalled thousands of its new Cybertrucks over safety concerns. Concerns were raised about their accelerator pedals getting trapped by the interior trim, heightening the chances of a crash.
After a tumultuous week, Mr Musk said he would postpone his planned meeting in New Delhi with Indian Prime Minister Narendra Modi, due to “very heavy Tesla obligations”.
In the same week, the EV maker announced plans to lay off more than 10% of its global workforce.
Tesla sparked a price war over a year ago when it markedly cut prices at the expense of profits. It now faces stiff competition from several Chinese firms, including new entrant Xiaomi.