Tesla Model Y Price Reduction: Eligibility for Ecological Bonus and Competitive Strategy

2024-01-17 07:57:11

Like last year, around the same period, Tesla is adjusting the price of the Model Y. A model which is still eligible for the ecological bonus.

Tesla Model Y // Source : Tesla

Tesla is now joining the downward price trend initiated by manufacturers like Renault, MG and BYD. This price reduction, however, does not take place in the context of loss of eligibility for the ecological bonus, because it concerns an eligible Tesla model. This is Tesla’s Model Y which sees its price drop by 3,000 euros.

37,990 euros for the Model Y

This price drop comes following a period where Tesla’s recent observed price drops were primarily limited to discounts on existing inventory, rather than official price adjustmentss. Thus, the Propulsion model of the Model Y is now offered at 42,990 euros.

Taking into account the current ecological bonus of 5,000 euros (which will at some point increase to 4,000 euros), the final price of the Propulsion model is 37,990 euros. This price should also have consequences on the prices of models kept in stock, but also on the prices of second-hand models. Moreover, black paint is no longer offered as standard, it is once more billed at 1300 euros. And, good news, the installed audio kit is still standard with 13 speakers, unlike the modifications made to the same model in the United States and Canada.

New prices as of January 17, 2024Model Y PropulsionModel Y Long RangeModel Y Performance New price€42,990€49,990€55,990 Old price€45,990€52,990€59,990 Price drop – €3,000 – €3,000 – €4,000

Tesla justifies its price reduction by better efficiency of its factories, and therefore a reduction in manufacturing costs.

To do this, we take advantage of original engineering and manufacturing processes that make our operations more efficient, both in terms of production rates and costs incurred. By providing our customers with these efficiency gains, we are able to make the best product even more affordable.

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This Tesla strategy might be seen as a response to the arrival of competing electric models, such as the Renault Scénic E-Tech and the Peugeot e-3008. The latter stand out for their particularly attractive prices, in any case much more attractive than the usual practices of Renault and Peugeot. Here, obviously, Tesla is adjusting its strategy to maintain its competitiveness. You should also keep in mind that the Model Y will benefit from a restyling this year.

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