Tesla cut prices several times last year to stay competitive in the market, and that tactic paid off.

In 2023, Tesla recorded a 40% increase in sales, i.e. it had a total of 1.8 million units sold, and the total revenue is 19% higher compared to the previous year, CEO Elon Musk said.

He stated that revenues slowed down towards the end of the year, but also that significantly weaker growth is expected in 2024.

As Musk stated, Chinese brands represent a serious challenge. He warned that if market restrictions are not introduced, "Chinese competition can destroy most car companies", as reported by CNN.

In support of Musk's call for market restrictions is the fact that BYD overtook Tesla in terms of sales in the fourth quarter, so it is no wonder that the billionaire reacts this way.

Additionally, it's not just Tesla that is lowering prices to stay competitive, Chinese manufacturers are also doing it, so it's up to European brands to see how they can stay relevant in the battle for customers.