Tesla has cut prices once again in several markets, including Germany, France, Israel, and Singapore, as it is scaling up and improving the production capacity of its Model 3 and Model Y vehicles built at Gigafactory Berlin.
In Germany, Tesla lowered the price of the Model 3 Standard Range by €2,000 (2,205.92) to €41,990 ($46,313.29), while the Model 3 Long Range came down €3,000 ($3,308.88).
It is now priced at €50,990 ($56,239.93)The Model 3 Performance also saw a €6,000 ($6,617.76) discount, bringing its price to €54,990 ($60,651.77).
While Model Y Standard Range and Long Range configurations saw no change, the Model Y Performance dropped by €4,000 ($4,411.84) to €60,990 ($67,269.53).
Germany just was one of several markets that received price cuts. In France, the Model 3 Standard Range and Long Range both received €3,000, now priced at €41,990 and €49,990, respectively. The Model 3 Performance dropped by €6,000 and is now available for €53,990.
The Model Y Standard Range and Long Range also saw a €2,000 price cut while the Model Y Performance saw a €4,000 decrease as well.
Singapore’s Model 3 and Model Y dropped by 4.3 and 5 percent, Reuters said.
Finally, in Israel, the Model 3’s Standard Range was cut again, bringing its total savings to 25 percent over the course of 2023 thus far.
Tesla has used price cuts aggressively across markets this year to not only spur demand for its vehicles but also increase its market share as competition increases.
The price cuts are a unique opportunity as Tesla’s ability to manipulate demand by dropping price points is something it has exclusively. Legacy automakers are still widely operating by a dealership model, and Tesla’s ability to control prices from an executive level is something only it has.
While the price cuts are a strong indication of a coming surge in sales for the automaker, analysts have mentioned that the reductions will affect Tesla’s margins.
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