Tesla Drops Car Prices “Boom” in Europe in Sync with Chinese Strategy 2024

Pranay

11 months ago

Tesla Drops Car Prices in Europe:

Tesla recently decided to make their Model Y cars more budget-friendly in Europe, following a similar move in China just a week ago. The price cuts were applied in several countries, including Germany, France, Norway, and the Netherlands. In Germany, for example, the Model Y rear-wheel drive model is now priced at 42,990 euros, which is around 4.2% less than its previous cost. The Model Y Long Range saw an 8.1% reduction, now priced at 49,990 euros. Similar discounts were implemented in France, where prices were lowered by up to 6.7%, and in the Netherlands, where the Model Y prices were reduced by up to 7.7%. In Norway, Tesla slashed prices by a range of 5.6% to 7.1%.

Tesla Stock Dips as Company Extends Aggressive Price Cuts:

Tesla’s stock experienced a 1.6% drop in early U.S. premarket trading.

This happened following Tesla’s decision to lower the prices of its Model 3 and Model Y cars in China. Tesla has been consistently reducing its car prices in China over the last year, aiming to offer more competitive pricing compared to local rival BYD.

Tesla Slashes Model 3 and Model Y Prices Amidst Supply Chain Disruptions:

Tesla has recently cut the prices of the Model 3 by 6% compared to December last year, and the Model Y prices are also down by 11%, according to information from JL Warren Capital.

Tesla’s operations in Germany faced some issues due to disruptions in the Red Sea caused by attacks from the Iran-backed Houthis group on ships using the crucial route. This situation has created chaos in global trade and received criticism worldwide.

Due to the disturbances in the Middle East, Tesla announced a temporary halt in most car production at its Berlin-Brandenburg plant last week. The reason given was a shortage of parts due to changes in transportation routes caused by the ongoing turmoil in the region.

BYD Overtakes Tesla Globally, Volkswagen Surpasses in Germany’s Electric Car Race:

In the electric car world, things have gotten really competitive lately. Tesla used to be the top dog, but now BYD, a Chinese company supported by Warren Buffet, is the biggest electric vehicle maker globally. Meanwhile, in Germany, Volkswagen has outpaced Tesla in electric car sales, grabbing a larger share of the market. So, in simpler terms, other companies are giving Tesla a run for its money in the electric vehicle market.

This is the first time ever that the best selling vehicle in Europe for a full year is 100% electric, that vehicle is the Tesla Model Y! 🇪🇺

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— Teslaconomics (@Teslaconomics) January 18, 2024