Tesla has slashed prices in key markets like China and Germany, mirroring its recent price adjustments in the United States, amid a backdrop of faltering sales and intensifying competition from Chinese electric vehicle manufacturers. This adjustment comes shortly after CEO Elon Musk postponed his anticipated visit to India, where significant EV-related announcements were anticipated.

Tesla experienced its first quarterly decline in global vehicle deliveries in nearly four years, prompting CEO Elon Musk to assert the necessity of price adjustments to balance production and demand. Notably, the price of the updated Model 3 in China saw a reduction of 14,000 yuan, while in Germany, the rear-wheel-drive Model 3 now starts at 40,990 euros. Similar price cuts were rolled out across Europe, the Middle East, and Africa. In the U.S., reductions were applied to the Model Y, Model X, and Model S vehicles by $2,000 each, alongside a drop in the cost of the Full Self-Driving Driver Assistant software to $8,000.

Tesla has been slow to update its models due to high-interest rates impacting consumer buying power, while its competitors in China are introducing cheaper models. Musk cancelled a trip to India where he was to meet Prime Minister Narendra Modi and announce plans for Tesla's entry into the South Asian market. The company is also planning to lay off more than 10% of its global workforce in anticipation of its first annual drop in deliveries.

Elon Musk was expected to visit India on April 21-22. However, the visit was postponed one day ahead of his visit. Musk attributed the delay to 'very heavy Tesla obligations'. This announcement comes just days after Musk confirmed his plans to meet with Prime Minister Narendra Modi during his visit, reportedly to finalize Tesla’s entry into the Indian market.

The unveiling of a new Electric Vehicle (EV) policy by the central government has fueled speculation regarding Tesla's potential entry into the Indian market. The policy stipulates that global companies eyeing India's EV sector must invest a minimum of Rs 4,150 crore (approximately USD 500 million) to establish manufacturing plants within the country. Elon Musk's forthcoming visit to India is eagerly awaited, seen as a precursor to Tesla's official debut in India. However, Musk's expressed intention to delay his visit suggests a possible rescheduling for later in the year.

Reports emerged indicating that Tesla officials were scouting potential locations in India for a manufacturing facility, anticipated to require an investment of around USD 2 billion. This decision came in the wake of India's unveiling of a policy aimed at lowering steep tariffs on imported vehicles, encouraging local investment. With Elon Musk's visit to India now postponed and awaited, there is heightened anticipation regarding its potential implications for the Indian EV market.