Tesla and Chinese electric vehicle (EV) maker Li Auto have both announced significant price cuts on their vehicle models amid tough market conditions. Tesla, facing its first revenue decline in four years and a 40% drop in operating profit, reduced prices globally across various models and its self-driving software. This strategic move, which includes price cuts in China, aims to boost sales as the company braces for its quarterly earnings report, anticipated to show the worst results in seven years. Concurrently, Li Auto reduced prices for its 2024 model lineup, including the Li L7, Li L8, Li L9, and Li Mega, with cuts of up to 30,000 yuan for the Li Mega model. Both companies' stock prices have suffered, with Tesla's shares falling by up to 3.75% in premarket trading and Li Auto's nearly 9%. The price reductions are seen as a strategy to boost sales and market share amid declining global EV sales and increased competition.