At the beginning of the year, Tesla lowered the price of all versions of the Model 3 and Model Y in China between 6 and 13.5%. It was the second decline in less than three months, before an unstoppable fall of 72% in the stock market after (results presentation)(results presentation). Despite the numbers, Tesla has grown both in production and in sales at the end of the year, although this has not been enough to meet the forecasts.
Continuing with this strategy of lowering prices, the Model 3 and Model Y follow the trail in Spain. Both models lower their final bill considerably, and that is that the base version of the Model 3 suffers a reduction of more than 6,000 euros, a difference that is increased the more expensive the version of the vehicle is.
Prices down, first in China. Tesla’s vice president, Grace Tao, justified the price drop in China based on the “government’s call to promote economic development and encourage consumption.” She similarly claimed that “Tesla’s price adjustments are supported by countless engineering innovations.”
The reality, at least in China, is that deliveries hit their lowest level in five months, not to mention Beijing ending its subsidy program for electric cars. As a stimulus for demand, Tesla has made a move by lowering the final bill in China, a measure that is beginning to spread to other territories.
The Model 3 in Spain. The Tesla Model 3, as Hypertextual collects, had a base invoice of 52,970 euros. If we access its configurator, we can get hold of it for 46,200 euros. The Great Autonomy costs 52,400 euros (now we can get the Great Autonomy at the price of the base model), and the Performance is below 60,000 euros.
Even more savings with Model Y. The Tesla Model Y is also on sale. The base version of this model goes from 52,200 euros to 44,900 euros, more than 7,000 euros discount for the standard version. If we talk about Great Autonomy, it goes from 65,990 euros to 57,990 euros, one of the biggest discounts we have seen in Tesla prices.
The possible reasons. Tesla wants to increase demand for its vehicles. The electric car must become cheaper to conquer Spain, a country in which they have a clear market dominance within the segment. In addition to this reason, Tesla is increasing local European production with its Gigafactory in Berlin. However, the Tesla manufactured in the Shanghai Gigafactory, such as the Model 3 and Model Y without all-wheel drive, also lower their bill.
Inflated prices? After a price drop of almost 10,000 euros in some models, it is inevitable to consider the margin with which Tesla was working, and to what extent investments in the Gigafactory can influence such reductions in the final bill. Be that as it may, this discount that allows access to a Model 3 for just over 46,000 euros (before aid) can be an important purchase incentive for the start of the 2023 course.
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