American car maker, Tesla is the face of the electric car market globally. The company has been doing quite well until Elon Musk bought Twitter. The company’s value has been dropping uncontrollably and it is doing all it can to keep things stable. In a surprising move, Tesla is offering decent price cuts in different parts of the world. However, there have been mixed reactions with regard to Tesla’s price cuts. While some netizens lament that the price cut caused them heavy losses, others are happy with the discounts. Some old users lament seriously because they plan to sell their cars at a profit.
Tesla cuts prices worldwide
The electric car brand cut prices in several countries of the world including China, the U.S., Germany, South Korea, Japan, Canada, Australia and others. In China and the U.S., Tesla announced a comprehensive and large-scale price cut for all models. The company also cut the price of Model 3 in Germany.
Model Y and Model 3 get big discounts in the U.S. and Germany
In the United States, the biggest drop is the basic version of Model Y, which has a drop of $13,000. Other Model series also have different price cuts. In Germany, the price of the Model 3 rear-wheel drive version also drops to 43,990 euros while the Model 3 long-range version drops to 53,990 euros. The price of the Model 3 high-performance version also drops to 60,990 euros.
In addition, the new price of the Tesla Model Y means that you can enjoy the $7,500 electric car tax credit in the “American Inflation Reduction Act”. This means that the Tesla Model Y has dropped by up to $20,500 in the United States and the new price starts at $45,490.
Price cuts in China
On January 6, in China, Tesla’s Chinese models got massive price cuts. The starting price of Model 3 is 229,900 yuan ($34,000), and the starting price of Model Y is 259,900 yuan ($39,000). The delivery cycle is 1-4 weeks.
Specific price reduction:
- Model 3 – price cut down by 36,000 yuan ($5,000) to 229,900 ($34,000)
- Model 3 high-performance – price cut down by 20,000 yuan ($2900) to 329,900 yuan ($49,000)
- Model Y – price cut down by 29,000 yuan ($4300) to 259,900 yuan ($39,000)
- Model Y’s long battery life version – price cut down by 48,000 yuan ($7100) to 309,900 yuan ($46,000)
- Model Y high-performance version – price cut down by 38,000 yuan ($5600) to 359,900 yuan ($53,600).
Price cut in Canada
According to DriveTeslaCanada, Tesla has lowered the prices of all models in Canada.
The specific price changes are as follows:
Gizchina News of the week
- Model 3 rear-drive version drops 11.3% from 61,980 Canadian dollars to 54,990 Canadian dollars
- Model 3 High-Performance version drops by 13.1% from 83,990 Canadian dollars to 72,990 Canadian dollars
- Model Y’s long-range version drops by 19.5% from 86,990 Canadian dollars to 69,990 Canadian dollars
- Model Y’s high-performance version drops by 13.1% from 83,990 Canadian dollars to 72,990 Canadian dollars
- Model S drops by 10.2% from 136,990 to $122,990 Canadian dollars
- Model S Plaid version drops by 16% from 178,590 to 149,990 Canadian dollars
- Model X Long Range version drops by 9.5% from 157,990 to 142,990 Canadian dollars
- Model X Plaid Edition drops 15.4% from 185,590 to 156,990 Canadian dollars
Price cut in Germany
Tesla has lowered the price of Model 3 / Y in many European countries, including Germany, France, Spain, Portugal, the Netherlands, the United Kingdom, and Norway. The price cuts range from 1% to 20%. For details, please refer to the table below.
Tesla has recently lowered the price of cars in many markets around the world. The latest price reduction is in the German market.
Today, Tesla cut the price of Model 3 in Germany:
- Model 3 rear-wheel drive version: 49,990 euros drops to 43,990 euros
- Model 3 long battery life version: 59,490 euros drops to 53,990 euros
- Model 3 high-performance version: 63,490 euros drops to 60,990 euros
The prices of Tesla Model 3 and Model Y in mainland China are still the lowest in the world. The starting price of these devices in China costs only $34,000 and $39,000 respectively.
Price cuts in Japan, South Korea and Australia
On Friday, Tesla cut the price of Model 3 / Y in China again in less than three months, causing dissatisfaction among overseas car owners. But in fact, in addition to China, Tesla has also lowered its Model Y and Model 3 pricing in Japan, South Korea and Australia. Tesla lowered the Model 3 and Model Y cars by about 10% in Japan. This is the first time since 2021 that the price of Japanese cars has been lowered. These cars now cost about $42,000.
Internal sources claim that the price cut is part of a plan to stimulate demand for capacity at Tesla’s Shanghai Gigafactory, which is already the company’s largest single production center. It is also Tesla’s first major move since appointing Tom Zhu to be in charge of global production and deliveries.
Tao Lin, vice president of Tesla, said that Tesla’s price reduction in China reflects numerous engineering innovations, starting from “first principles” and insisting on cost pricing. He claims that Tesla is responding to China’s call with practical actions to promote economic development and release consumption potential.
Tesla sales drops
Data from major analysts shows that Tesla’s China deliveries in December 2022 hit the lowest level in five months. In the first 11 months of this year, sales of BYD’s Han series, which includes plug-in hybrid models, were more than double that of the Model 3 in China, according to the China Travel Association. In addition, after Tesla’s price cut, the starting price of Model 3 is already at the same level as BYD’s best-selling Han EV. Prices for Model 3 and Model Y cars in China are already 24% to 32% lower than in the United States, according to Reuters calculations, after factoring in materials and labor costs.
Before the opening of the U.S. stock market, Tesla’s stock price had fallen by 5.46%.
