Just one week after slashing the price of its Model 3 and Model Y in China, Tesla Inc. has now lowered the price of its Model Y vehicles in Germany, where it lost its title as the leading seller of electric vehicles (EVs) to Volkswagen in 2023. The Model Y Long Range and Model Y Performance now retail for 49,990 euros ($54,340) and 55,990 euros, respectively, which is 5,000 euros less than they were previously. This is a 9% and 8.1% reduction in price. Data on its website indicates that it also dropped the price of the Model Y rear-wheel drive models by 1,900 euros, or 4.2%, to 42,990 euros.
“Volkswagen Overtakes Tesla as Largest EV Seller in Germany; Tesla Announces Price Cut Amid Production Suspension”
As a result, Volkswagen overtook Tesla as the top EV seller in Germany, taking up 13.5% of the market as opposed to 12.1% for Tesla. The most recent price reduction comes after Tesla revealed last week that it would stop producing most cars at its factory outside of Berlin from January 29 to February 11. The corporation attributed changes in transport routes resulting from ship attacks in the Red Sea to a shortage of components. What’s more, it coincides with an EV makers’ “Darwinistic” bargain race in China, the world’s largest vehicle market, according to Mercedes-Benz CEO Ola Kaellenius.
“Tesla’s Market Value Drops $94 Billion in 2024; Cuts Model Y Prices in Europe Amid Challenging Market Conditions”
When Tesla’s market value drops to $94 billion in 2024, investors become alarmed. The early termination of Germany’s EV subsidy plan, which was set to run until the end of 2024, occurred last month. This move was anticipated to have an impact on German automakers, who were already in a price war to bring their vehicles down to levels set by US and Chinese rivals. After lowering the price of its Model 3 and Model Y cars in China, Tesla has also lowered the price of its Model Y cars in Europe. Data from Tesla’s website indicates that the company lowered the price of its Model Y cars by as much as 8.1% in Germany, as well as in France, the Netherlands.
“Tesla Slashes Model Y Prices in Europe Following Similar Cuts in China”
A week after announcing comparable price reductions in China, Tesla lowered the price of the Model Y in many European nations late on Tuesday. Based on data from the regional websites of the company in Germany, France, Norway, and the Netherlands, the company lowered the price of its vehicles sold in those regions. The current selling price of the vehicle Y with rear-wheel drive in Germany is 42,990 euros, or $46,760.65, which is 4.2% less than the previous price. The price of the Model Y rear-wheel drive car has decreased by 4.2% to 42,990 euros, while the vehicle Y Long Range has decreased by 8.1% to 49,990 euros.
“Tesla Extends Model Y Price Cuts to France, Netherlands, and Norway; Global Challenges Impact German Operations”
In France and the Netherlands, Tesla shaved up to 7.7% and 6.7% of the Model Y’s pricing, respectively. The company lowered prices in Norway by 5.6% to 7.1%. The price decreases follow Tesla’s announcement of lower prices for its Model 3 and Model Y automobiles in China. The company has significantly lowered the price of its cars in China over the last year or so, outpacing local rival BYD in the process. The Houthis, an organisation supported by Iran, launched attacks on ships using the vital waterway, disrupting international trade and drawing condemnation from other countries. This has caused delays for Tesla’s German operations.
“BYD Overtakes Tesla as World’s Largest EV Maker in 2023; Volkswagen Leads in Germany”
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Over the past year, the market for electric vehicles has grown more competitive, with Tesla up against a plethora of other automakers. In 2023, BYD, a Chinese automaker supported by renowned investor Warren Buffet, overtook Tesla as the largest electric vehicle manufacturer globally. Volkswagen overtook Tesla as the market leader for electric vehicles (EVs) in Germany last year, outselling the US manufacturer with a 13.5% market share to 12.1% for Tesla, according to figures from the German federal automotive authority KBA.