Tesla’s price war appears to be going global with Western European buyers the latest to see list prices cut. Some analysts worry that the cuts will upset owners who will see the second-hand price of their vehicle fall.
US electric car giant Tesla has reduced prices for its Model Y cars across Europe. The move comes just a week after announcing similar price cuts for its Model 3 and Model Y cars in China.
The company reduced prices on its cars sold into Germany, France, Norway and the Netherlands, according to data from the local version of the firm’s websites in each of those markets yesterday (January 16).
In Germany, the Model Y rear-wheel drive model now sells for 42,990 euros ($46,760.65), that a 4.2% discount to the car’s previous advertised price. The Model Y Long Range now costs 49,990 euros, down 8.1%. Tesla was outsold in the German EV market by home-grown Volkswagen in 2023.
In France, Tesla has lowered prices on its Model Y cars by up to 6.7%, while in the Netherlands, Tesla reduced prices for the Model Y by up to 7.7%. In Norway, reductions vary between 5.6% and 7.1%. The Model Y is based on the popular Model 3 sedan platform. The taller more SUV like Y shares an estimated 75 percent of its parts with the Tesla Model 3
Tesla shares today (January 17) were 1.6% lower in US premarket trading.
The reductions come after Tesla announced price cuts for its Model 3 and Model Y cars in China. The company has reduced prices for its cars aggressively in China over the past year or so after BYD overtook it as top seller in the final quarter of 2023.
Tesla’s German operations have been affected by disruptions in the Red Sea after the Iran-backed Houthis group launched attacks on ships traversing the key route causing delays in battery delivery from China to its Berlin assembly plant.
Some analysts worry that the cuts will upset European owners who will see the second-hand price of their vehicle fall while in the USA Hertz is reportedly dumping thousands of Teslas onto the used-car market after it announced it was cutting its electric fleet by 20,000.
