Tesla has reduced prices in several major markets, including China and Germany, following price cuts in the United States.

This is due to declining sales and increased competition in the electric vehicle (EV) market, particularly from cheaper Chinese EVs.

The price cuts come after Tesla reported a decrease in global vehicle deliveries in the first quarter for the first time in nearly four years. In China, the starting price of the Model 3 was reduced by 14,000 yuan to 231,900 yuan.

In Germany, the price of the Model 3 rear wheel drive was lowered to 40,990 euros from 42,990 euros. Price reductions were also implemented in many other countries in Europe, the Middle East, and Africa.

In the US, Tesla lowered prices of the Model Y, Model X, and Model S vehicles by $2,000 and reduced the price of its Full Self-Driving software to $8,000 from $12,000.

Tesla has been slow to update its older models, and high interest rates have dampened consumer interest in expensive purchases. Meanwhile, competitors in China are introducing more affordable EV models.

Elon Musk postponed a trip to India where he was supposed to meet Prime Minister Narendra Modi and announce Tesla’s plans to enter the South Asian market.

Musk also announced that Tesla will be laying off more than 10% of its global workforce as the company anticipates a decrease in deliveries.

Tesla’s decision to scrap plans for an affordable EV in favor of robotaxis has caused confusion among investors, with Musk denying reports from Reuters without providing further details. Tesla’s stock has dropped by 40.8% this year.