Tesla launches Model 3 price cuts in other markets following the U.S.

Credit: Tesla Asia/X

Tesla has reduced the prices of its vehicles in multiple key markets around the world, after the automaker cut prices in the U.S. last week.

On Friday, Tesla cut prices by around $2,000 across most of its lineup in the U.S., with the exception of the Model 3. Late on Sunday, Tesla followed the U.S. reductions with additional price cuts in its key markets of China and Germany, where it has additional Gigafactory locations.

Tesla has reduced the rear-wheel-drive Model 3 price in China to 231,900 yuan (~$32,013), a drop of 14,000 yuan (~$1,933).

Credit: Tesla

In Germany, Tesla cut the price of the Model 3 rear-wheel-drive to 40,990 euros (~$43,650) from 42,990 euros (~$45,780).

Credit: Tesla

Along with those in Germany and China, prices have been cut across other European, Middle Eastern, and African countries, following sweeping reductions made in those markets a couple of months ago.

Elon Musk commented on Tesla’s price cuts over the weekend, noting that the company’s pricing strategy was focused on matching production with demand. The statement also came after Tesla reduced prices on its Full Self-Driving (FSD) add-on in North America on Friday, following a price reduction to subscription pricing for the software a little over a week ago.

Tesla increased the price of the Model Y in the U.S. at the beginning on this month, after the company announced plans to boost the SUV’s price after the end of March. Similarly, Tesla Europe announced that it would be increasing the Model Y price on March 22, following additional price increases made in the markets in February.

The latest price cuts also come ahead of Tesla’s Q1 2024 earnings call on Tuesday, for which the company opened its investor question platform last week. Tesla is expected to discuss a number of hot topics on the call, including its lower-than-expected delivery and production results, a vote on Elon Musk’s 2018 compensation package, the company’s upcoming robotaxi unveil, claims that the $25,000 vehicle has been canceled, and more, still.

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Zachary Visconti: Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently resides in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver and many other publications. When he isn't covering Tesla or other EV companies for Teslarati, you can find him writing and performing music, drinking lots of coffee, or hanging out with his cat, Banks. Reach out to Zach at zach@teslarati.com, or you can find him on X @zacharyvisconti.
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