Tesla slashes car prices across Europe after similar cuts in China

Tesla on late Tuesday trimmed prices for its Model Y cars across several countries in Europe, a week after announcing similar price cuts for its Model 3 and Model Y cars in China.

The company reduced prices on its cars sold into Germany, France, Norway and the Netherlands, according to data from the local version of the firm’s websites in each of those markets.

In Germany, the Model Y rear-wheel drive model now sells for 42,990 euros ($46,760.65), marking a roughly 4.2% discount to the car’s previous retail value. The Model Y Long Range now costs 49,990 euros, lower by 8.1% from the previous price, while the Model Y rear-wheel drive model retails for 42,990 euros, down by 4.2%.

In France, Tesla lowered prices on its Model Y cars by as much as 6.7%, while in the Netherlands, Tesla reduced prices for the Model Y by up to 7.7%. In Norway, the company slashed prices by between 5.6% and 7.1%.

Tesla shares were 1.6% lower in U.S. premarket trading.

The reductions come after Tesla announced price cuts for its Model 3 and Model Y cars in China. The company has reduced prices for its cars aggressively in China over the past year or so, undercutting local competitor BYD.

Tesla trimmed prices of the Model 3 by 6% compared to December last year, also taking prices for the Model Y down by 11%, according to data from JL Warren Capital.

Tesla’s German operations have been affected by disruptions in the Red Sea after the Iran-backed Houthis group launched attacks on ships traversing the key route, wreaking havoc on global trade and drawing international criticism.

As a result of the Mideast turmoil, Tesla said it would suspend most car production at its Berlin-Brandenburg plant last week, citing a lack of components due to changes in transport routes.

Competition in the electric vehicle market has been heating up over the past year, with Tesla facing off a slew of other automakers. BYD, a Chinese carmaker which is backed by legendary investor Warren Buffet, toppled Tesla as the world’s biggest EV maker in 2023.

Volkswagen usurped Tesla as the EV king in its Germany, outselling the U.S. automaker last year with a market share of 13.5%, compared to Tesla’s 12.1%, according to figures from German federal motor authority KBA.