Tesla slashes prices for cars and software after one of its toughest weeks yet

• Tesla cut car prices in the US, China, and Europe after sales fell.

• The company also reduced its software price by a third in the US.

• The company's challenges include disappointing delivery numbers, layoffs, and Cybertruck recalls.

Tesla is trying to win back customers with cheaper cars and software.

The electric-vehicle maker cut prices in key markets, including the US, China, and Europe, over the weekend as it faces falling sales and intensifying competition.

The company also slashed the price of its driver-assistance software, Full Self-Driving, by one-third, to $8,000 in the US.

The EV manufacturer is set to report first-quarter earnings on Tuesday. Profit margins have fallen dramatically when Tesla has dropped prices in the past.

Tesla lowered prices for most of its US cars, cutting the costs for the Model Y, X, and S by $2,000, Reuters reported.

In the US, the cheapest Model Y and the Model X — both SUVs — are being offered at their lowest prices. The best-selling Model Y now starts at $42,990, according to Tesla's website.