Tesla slashed prices for its electric vehicles in Europe, Israel, and Singapore on Friday, expanding an aggressive global pricing strategy that began in January. Tesla noted that the price cuts in numerous European markets, including Germany and France, are due to a scaling up and improvement in its production capacity.
“Our mission is to accelerate the transition to renewable energy. Our master plan has set a clear pathway to achieve that mission: the transformation of cost-intensive small-series products to cheaper mass-series vehicles,” Tesla stated.
In Germany, Tesla lowered the prices of the Model 3 and Model Y by 4.5% to 9.8%, marking the second price reduction this year following January’s price adjustments of up to 17%.
Customers in France who are purchasing a Model 3 for €44,990 (about $47,800), on the other hand, will now benefit from a further €5,000 price reduction through a government subsidy. It should be noted that an upper limit for the EV scheme is set at €47,000.
EV watchers in social media also observed price adjustments for the Model 3 and Model Y in countries such as Norway and the Netherlands.
Apart from Europe, Singapore also saw price cuts for the Model 3 and Model Y between 4.3% and 5%, as per Tesla’s website. The base rear wheel drive Model 3 in Israel had its price slashed by 25% as well, Reuters noted.
While Tesla’s aggressive pricing strategy may be interpreted by the company’s bears as a sign of waning demand, executives such as CEO Elon Musk have maintained that Tesla’s vehicles still attract a lot of consumers.
This could be seen in the company’s Q1 vehicle delivery data, which showed that Tesla achieved record quarterly deliveries of 422,875 vehicles from January to March. This is particularly impressive considering the short quarter and key markets such as China were affected by holidays such as the Chinese New Year.
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