Tesla said on Friday it was able to offer cars at more affordable prices as cost inflation normalized.
“At the end of a turbulent year with supply chain disruptions, we have achieved a partial normalization of cost inflation. can have
In Germany, Tesla has slashed Model 3 and Model Y prices by up to 17%, depending on configuration.
The Model 3 was Germany’s best-selling electric car last month, followed by the Model Y, beating out Volkswagen’s all-electric ID4. Volkswagen recently increased the price of his ID3 full-electric compact hatchback, bringing it on par with the Model 3.
In the UK, the Model Y price has been reduced from £51,990 to £44,990. The Model Y and Model 3 were his two best-selling EVs in the UK last year.
In France, customers who purchase a Model 3 for €44,990 will receive a further discount with a government subsidy of €5,000. The EV incentive threshold is €47,000. Model 3 prices in Italy have been reduced by 11-22%. The Model Y price has been reduced by 6% to 18%.
Last year, the United States and China together accounted for about 75% of Tesla’s sales, but Tesla is growing sales in Europe and ramping up production at its factory near Berlin.
For U.S. buyers of the long-range Model Y, the new Tesla price is a 31% discount, combined with U.S. subsidies that went into effect this month. Additionally, Tesla’s move has broadened the range of cars in its lineup that qualify for the Biden administration’s tax credit.
Before the price cut, the five-passenger version of the Model Y wasn’t eligible for that credit, which Musk called a “ruin.” After the price cut, long-range versions of the Model Y will qualify for a $7,500 federal credit.
In China, where Tesla slashed prices by 6% to nearly 14% last week, owners protested at distribution centers across the country, demanding compensation from Tesla. Tesla also cut prices in South Korea, Japan, Australia and Singapore.
Tesla underperformed Wall Street estimates for fourth-quarter deliveries. His 40% increase in shipments for the year fell short of Musk’s own projection of his 50% increase.
Mr. Musk said last month that “radical interest rate changes” would change the outlook for the industry as a whole, and that Tesla could cut prices to keep volume growth going.
The pricing change is the first major move by Tesla since the automaker appointed Tom Zhu, its lead China and Asia executive, to oversee U.S. production and U.S. and European sales.
Automotive News Europe’s Reuters, Bloomberg, Luca Ciferri and Nick Gibbs contributed to this report.
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