The price war on the EV market is intensifying. Tesla lowers prices of cars and FSD software

Luc Williams

Creating a fully automated driving system has long been a key factor in Tesla's high price. In recent weeks, the company has introduced new versions of driver assistance software – Full Self-Driving (FSD), and Musk promised to present a new robotaxi on August 8.

FSD will also be cheaper

On Saturday, the company led by Elon Musk lowered not only the prices of cars, but also the Full Self-Driving software. The price of FSD has been reduced in the US by a third to PLN 8,000. dollars.

Tesla's website states that when purchasing a new vehicle customers will receive a 30-day FSD trial period. According to the company, currently enabled features “require active driver supervision and do not provide full vehicle autonomy.”

During the weekend Tesla lowered prices in China and the US, i.e. in two key markets. Too in Europe, Tesla has discounted its products after disappointing first-quarter sales boosted stocks of unsold cars.

Here are Tesla prices after discounts

In China, Tesla has lowered prices across its entire lineup and improved Model 3 dropped to 231,900 yuan ($32,000) from 245,900 yuan previously. Model Y has been discounted from 263,900 yuan to 249,900 yuan, or approximately 34.5 thousand. dollars.

In the US, the cheapest version of the Model Y currently costs $42,990, which means the starting price of this SUV is the lowest ever. Tesla also dropped two other more expensive versions of the Model Y by $2,000 and the Model X to its lowest level yet.

Tesla triggers a new round of price war

Price war in the electric vehicle market in China has been going on since late 2022, when Tesla first lowered prices. The reductions continued last year as automakers struggled to meet sales targets. The war has shown no signs of abating this year, and Tesla's weekend move to cut prices across its product lineup in China could spark a new round of fierce competition.

The number of models at reduced prices this year has already reached half of the number from 2023 / Bloomberg

Li Auto Inc. immediately responds to Tesla's move by introducing discounts on new vehicle models. On Monday, Li Auto announced price cuts across its entire lineup of around 6-7%, with prices for the five-seat L7 SUV currently starting at 301,800 yuan ($41,700).

People who have already ordered but not collected their car will be entitled to the new price. Li Auto will also offer cash rebates to current owners of 2024 models.

Market leader BYD has previously reduced the prices of some of its most popular cars, including the Seagull hatchback, to below PLN 10,000. dollars.

Tesla's crazy week

Price cuts end a crazy week for the Austin automaker. It started with this Musk announced in a note addressed to over 140,000 people. company's employees that it reduces employment by over 10%. all over the world. Two top managers also left the company during this time.

On Wednesday, the company said it would ask shareholders to vote again on Musk's compensation package. At the end of January, a judge in the state of Delaware ruled in favor of investors who questioned the billionaire's $56 billion remuneration package, considering it too high.

On Friday, the company recalled nearly 3,900 Cybertruck pickup trucks to repair or replace accelerator pedals, which can shift and cause the vehicle to accelerate unintentionally, increasing the risk of a crash.


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