The American car manufacturer Tesla will significantly reduce the prices of its electric cars in Europe and the United States. In Belgium, the cheapest version of the Model 3 will be about 15 percent cheaper, with the Model X it will be 6 percent, says a Tesla spokesperson.
Tesla intervenes because sales figures fall below its own expectations. More and more electric cars are entering the market, making competition fiercer. The cheapest version of the Model Y will be 20 percent cheaper in the US market. The basic version then costs $ 52,990, which drops even further 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 cheapest version of a Model 3 will go from 52,990 euros to 44,990 euros, says a Tesla spokesperson. With the Model Y, 3,000 euros are deducted from the price, up to 46,990 euros. The biggest price drop is with the Model Y Long Range: from 65,990 euros to 53,990 euros. That is a decrease of 12,000 euros or 18 percent.
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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 about 6,000 euros to 43,990 euros, a decrease of about 12 percent.
Started in China
Recently, Tesla had already lowered prices in China. There, the price of these two models fell by 10 percent. It was the second drop, after a first cut in October last year. In China, Tesla is increasingly facing competition from Chinese manufacturers such as BYD, Xpeng and Nio.
The price reductions may make the Tesla models 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. Earlier this month, hundreds of Chinese Tesla drivers gathered in front of the car manufacturer’s showrooms and distribution centers out of dissatisfaction with the new price cuts in China.
Tesla shares fell about 5 percent on the New York Stock Exchange after the announcement, as the price drops will weigh on the company’s margins.
