Summary:
- Tesla has announced a series of price cuts for its Model 3 and Model Y cars in various countries worldwide.
- The price cuts have ranged from 1% to as much as 25% and have been implemented multiple times in some countries.
- These reductions in price are part of Tesla’s efforts to make its electric cars more affordable and competitive in the global market.
Tesla continues to cut the prices of its vehicles to put pressure on rival automakers, and the latest round of price reductions are for its Model 3 and Model Y.
Here’s an overview of the global price cuts noted by Reuters:
- China: Tesla cut the prices of all versions of its Model 3 and Model Y cars in China by 6.0% to 13.5% in January. The prices of the performance and long-range versions of the Model Y were raised in February. The performance Model Y is still 9% cheaper, and the long-range version is 13% cheaper than before the price cuts.
- Japan: Tesla reduced the prices of the Model 3 and Model Y cars by about 10% each for the first time since 2021. The price of the rear-wheel drive Model 3 is now 5.369 million yen ($39,501.18), down from 5.964 million yen.
- South Korea: Tesla cut prices on different models by about 6 million won to 10 million won ($7,702.74), according to a sales official in South Korea. The starting price for the basic Model 3 rear-wheel drive vehicle is 64.34 million won ($50,637), while the Model Y Long Range starts at 84.999 million won.
- United States: Tesla announced its fifth price reduction for the year in April, cutting prices by 2% to nearly 6%. The company has reduced the base Model 3 price by a total of 11% and the base Model Y price by 20% since the beginning of the year.
- Germany: Tesla lowered the prices of the Model 3 and Model Y by about 1% to almost 17% in January. The company also cut the price of the Model 3 by 4.5% to 41,990 euros ($46,462) in April, and reduced the Model 3 Performance version’s price by 9.8%. The Model Y Performance version’s price was slashed by 9.2%, while the Model Y rear-wheel drive and Long Range prices remained the same.
- France: Tesla customers buying the Model 3 for 44,990 euros ($47,860.36) can get a further price reduction of 5,000 euros through a government subsidy, with an upper limit of 47,000 euros.
- Singapore: Tesla cut prices of the Model 3 and Model Y vehicles by 4.3% to 5% in April. The prices of the rear-wheel drive versions of both models were reduced by S$4,000 ($3,020), while the dual motor all-wheel drive versions of the two models were reduced by S$5,000.
- Israel: Tesla reduced the price of the base rear-wheel drive Model 3 by 25% from its price after an initial round of global price cuts in January. The car now costs 152,990 shekel ($41,953).
Price cuts also took place in Norway, the Netherlands, Denmark, Slovenia, Italy and more.
Here are the discounts on the Model 3 Performance and Model Y Performance in Denmark:
These price cuts will likely result in more sales for Tesla and more pressure on competitors to follow suit with their own reductions–if they can.
