Following its recent price adjustments for the Model 3 and Model Y in China, Tesla has now reduced prices for its Model Y vehicles in Germany.
A fragment of the Tesla Model Y is visible in this image. Photo credit: David DeLaRosa via Unsplash, free license
This decision comes after Tesla conceded its position as the leading electric vehicle (EV) seller to Volkswagen in Germany in 2023, and the company is apparently striving to maintain its competitive advantages throughout 2024 and possibly overtake its German rival.
The Model Y Long Range and Model Y Performance prices were cut by 5,000 euros to 49,990 euros and 55,990 euros, respectively, reflecting discounts of 9% and 8.1% compared to the previous rates.
Additionally, Tesla lowered the price of Model Y rear-wheel drive models by 1,900 euros (4.2%) to 42,990 euros.
Volkswagen surpassed Tesla as Germany’s top EV seller in 2023, securing a 13.5% market share compared to Tesla’s 12.1%, according to data from the German federal motor authority KBA.
This marketing change aligns with the ongoing trend of electric vehicle (EV) makers engaging in a competitive pricing environment in China, the largest car market globally.
Germany’s electric vehicle subsidy program, initially scheduled to run until the end of 2024, ended prematurely last month. This decision is anticipated to impact German automakers, who were already facing challenges in aligning prices with those offered by Chinese and U.S. competitors.
Written by Alius Noreika