The United States electric vehicle manufacturer Tesla has slashed the selling price of its products in the wake of a slump in sales during the first three months of 2024.

The world's largest EV maker by volume, which is owned by the technology billionaire Elon Musk, said it would reduce prices in all of its major markets, which include the US, Germany, and China.

The BBC said Tesla's woes were largely down to it being outcompeted by Chinese EV manufacturers, including Nio and BYD, which briefly took the title of world's largest EV maker at the end of last year. The Chinese smartphone maker Xiaomi has also joined the EV industry, bringing out a car last month that directly competes with Tesla's Model 3.

The full extent of Tesla's problems will become clearer late on Tuesday, when the company releases its profit figures for the first quarter at the end of stock exchange trading in the US.

Musk said on the X social media site, which he also owns, that Tesla had little choice but to adjust its selling prices.

"Tesla prices must change frequently in order to match production with demand," he wrote.

The price cuts mean a Model 3 will now sell in China, the company's largest overseas market, for 231,900 yuan ($32,000), which is around $2,000 less than it sold for last week. The company has also cut the price of its Model Y, Model X, and Model S vehicles by around $2,000.

The Reuters news agency said Tesla also plans to cut prices throughout the rest of Europe, the Middle East, and Africa.

The news of the round of aggressive price cuts followed an announcement from the company last week that it will cut more than 10 percent of its global workforce.

The fast-changing situation at Tesla prompted Musk to postpone a planned trip to India on the weekend, where he was expected to talk to India's Prime Minister Narendra Modi about a proposed Tesla production facility in the country.

Musk said the sudden postponement was necessary because of "very heavy Tesla obligations".

The Associated Press said those obligations would have included him overseeing the recall of thousands of the company's new Cybertrucks because of safety concerns.

The challenges facing the company contributed to a 40-percent fall in the value of Tesla shares since the start of 2024.

The company's round of price cuts triggered an immediate response from some of the Tesla's competitors, with the Chinese company Li Auto announcing on Monday it was cutting the price of all four of its models, with the Li Mega selling for $4,000 less than it did last week.