technology

Tesla drastically lowers the prices of its cars in the United States and Europe

Recent owners of a Tesla vehicle are likely to see red. Indeed, the North American manufacturer has just reduced the prices of all its electric models by up to 20%, both in the United States and on the Old Continent. According to the Reuters news agency, this decision comes after Elon Musk “warned that the prospect of a recession and higher interest rates could lead it to lower vehicle prices in order to support volume growth at the expense of profits”.

Across the Atlantic, the Model 3 and Model Y have seen their prices drop by 6 to 20% “compared to prices before discount”, according to Reuters calculations. This rebate does not include the federal tax credit of up to $7,500. The Model S and Model X are also affected by this tariff reduction.

Tesla Model 3 at €39,990

In Europe, Tesla electric vehicles also benefited from lower prices. In Germany, one of the biggest European markets, the Model 3 and Y enjoyed a discount of between 1 and 20%.

TESLA MODEL 3 SALE

© Erick Fontaine / Digital

France does not escape these “promotions” either. The Model 3 Propulsion – the first model – is displayed at €44,990, excluding the ecological bonus of €5,000, i.e. a hyper competitive price of €39,990. Remember that the Model 3 had undergone many increases in 2022 and that its last price was €53,490.

The other versions also benefit from it. Thus, the Model 3 Grande Autonomie goes from 62,490 to 52,990 €, while the Model 3 Performance is now offered at 59,990 €, against 66,490 € previously.

As Reuters notes, this fall in prices on the main markets marks “a reversal from the strategy the automaker had pursued for much of 2021 and 2022, when orders for new vehicles exceeded supply”. In 2022, Elon Musk himself acknowledged that “prices had become embarrassing and could hurt demand”.

Recall that just last Friday (January 6, 2023), Tesla had decided to apply a reduction of 13 to 24% on cars marketed in China, provoking the anger of the new owners of Model Y and Model 3 who came to demonstrate in the concessions of several large cities of the country.

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