Source: Gasgoo Author: Yara
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According to foreign media reports, a week after announcing price cuts in China in the face of uncertain demand for electric cars, Tesla has drastically reduced the price of its Model Y cars across Europe, including Germany.
Among them, in Germany, Tesla cut the price of its long-range and high-performance versions of the Model Y by €5,000 to €49,990 and €55,990, respectively, compared with the previous price, the price cuts are 9 % and 8.1 %, respectively. In addition, Tesla has reduced the price of the rear-wheel drive version of the Model Y by 4.2 %.
In France, Tesla cut the price of the Model Y by 6.7 %, and in Denmark, the price of the Tesla Model Y was reduced by as much as 10.8 %.
In the Netherlands, Tesla cut the price of the Model Y by 7.7 %; in Norway, the price of the Tesla Model Y was cut by between 5.6 % and 7.1 %.
Image source: Tesla
Although Tesla did not give a reason for the price cuts, demand for electric cars in general has been slowing because of reduced state subsidies and high borrowing costs. According to the German Federal Motor Authority (KBA), Tesla struggled in Germany in 2023, with new car registrations dropping 9 % to 63,685 units, compared to the country’s overall electric vehicle sales growth of 11.4 %.
As a result, Tesla lost its title as the largest electric vehicle seller in Germany in 2023, with Volkswagen instead taking the top spot with 13.5 % of the electric vehicle market share compared to Tesla’s 12.1 %.
On 17 January, Wells Fargo and UBS cut their price targets for Tesla stock by more than 8% and nearly 11%, respectively. Coupled with the news of the price cuts, Tesla shares fell nearly 3% that day. And so far in January, the stock has fallen about 11.5%.
