More and more electric cars are coming onto the market, making competition fiercer, and Tesla is also noticing this. With the lower prices, the company of billionaire Elon Musk hopes to be able to boost sales.
The price can drop by up to 20 percent depending on the model and market. For example, the most expensive models in the US domestic market have seen a price drop of up to $ 21,000. The cheapest version of the Model Y will be 20 percent cheaper in the US market. The basic version then costs $ 52,990, which is still dropping because a tax credit has recently been introduced in the US that can amount to $ 7,500.
Prices have also been reduced in key European markets, including Germany, the United Kingdom and France. Teslas are also becoming cheaper in the Netherlands, Belgium, Austria and Switzerland. In Belgium, for example, the price of the entry-level model of a Model 3 drops from 52,990 euros to 44,900 euros, or a difference of no less than 8,000 euros. With a Model Y, the new price is 46,990 euros, while it was previously 49,990 euros. The prices of the more expensive models, S and X, are not falling.
In Germany, the price of the entry-level version drops by USD 9,100 to EUR 44,890, which is almost 17 percent less expensive. With a Model 3, the price drops from the entry-level version regarding 6,000 euros to 43,990 euros, a decrease of regarding 12 percent.
The price reductions make the Tesla models slightly more affordable for more consumers. However, the price reductions are detrimental to those who have recently purchased a Tesla, as the second-hand value is now lower.
Recently, Tesla had already lowered prices in China. There, the price of the two models fell by 10 percent. It was the second drop, following a first cut in October last year. Tesla in China is increasingly facing competition from Chinese manufacturers such as BYD, Xpeng and Nio. Hundreds of Chinese Tesla drivers demonstrated last weekend in front of showrooms and distribution centers of the car manufacturer out of dissatisfaction with the price reduction. They recently bought their new car themselves, so they just missed out on the discount. The angry Tesla owners demanded that Tesla still pay them the price difference. Many protesters bought their Tesla just before the turn of the year to take advantage of a subsidy scheme that expired at the end of 2022.
“It may be normal business practice, but this is not how a responsible company should behave,” complained a Tesla owner who protested Saturday at the company’s delivery center in a suburb of Shanghai. However, Tesla does not intend to compensate them now, a spokesperson told Archyde.com news agency.