Tesla, overseen by billionaire Elon Musk, has once again reduced prices in several key markets, including the US, China, and Germany, amidst a decline in sales for the electric car leader.

This adjustment follows a significant decrease in global vehicle deliveries during the first quarter of this year.

The electric vehicle industry has witnessed escalating competition, particularly from Chinese manufacturers, prompting what can be described as a price war. Tesla is set to announce its financial results for the first quarter of 2024 after the close of the US market on Tuesday.

Elon Musk, in a post on the social media platform X (formerly Twitter), emphasized the necessity for Tesla to frequently adjust prices to align with production and demand dynamics.

In China, Tesla slashed the starting price of the updated Model 3 by 14,000 yuan ($1,934; £1,562) to 231,900 yuan. Meanwhile, in the US, prices for the Model Y, Model X, and Model S were reduced by $2,000 (£1,616) on Friday.

Reuters news agency reports that price reductions were also implemented in numerous other regions, including Europe, the Middle East, and Africa.

Over a year ago, Tesla sparked an electric vehicle price competition by aggressively cutting prices, albeit at the expense of profit margins.

The firm has been slow to refresh its ageing models while rivals in China, such as BYD and Nio, have been rolling out cheaper models. Chinese smartphone maker Xiaomi also launched its first EV last month.

Last week, Tesla announced plans to lay off more than 10% of its global workforce.

Over the weekend, Mr Musk said he would postpone a planned trip to India, where he was due to meet Prime Minister Narendra Modi, due to "very heavy Tesla obligations".

On Friday, the firm recalled thousands of its new Cybertrucks over safety concerns.

It is because their accelerator pedals currently risk getting trapped by the interior trim, increasing the possibility of crashes.

Tesla's shares have fallen by more than 40% since the start of this year.

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