Tesla Cuts Vehicle Prices In Europe To Boost Demand

Luxury electric major Tesla Inc. has slashed the price of its vehicles in Europe, including Germany and France, aiming to boost demand, amid an improvement in its production capacity. The price cut for all versions of the Model 3, Model S, and Model X ranges between 4.5 percent and 9.8 percent, reports said.

Expanding an aggressive global pricing strategy, the company has also slashed prices for its electric vehicles in Israel and Singapore.

Tesla reportedly said, “Our mission is to accelerate the transition to renewable energy. Our masterplan has set a clear pathway to achieve that mission: the transformation of cost-intensive small-series products to cheaper mass-series vehicles.”

According to data on Tesla website, Model 3 price in Germany has been cut by 2,000 euros, or 4.5 percent, to 41,990 euros per vehicle. The company has also trimmed prices for Model 3 Performance version, which now stands at 54,990 euros, down 9.8 percent compared the previous price.

Tesla also cut the price of its Model Y Performance by 9.2 percent to 60,990 euros. Meanwhile, the prices for Model Y Rear Wheel Drive and Long Range remained unchanged.

The company in early March slashed prices of its Model S sedan and Model X SUV vehicles in the United States, aiming to boost demand.

Amid slowing demand for electric vehicles, recession fears and higher interest rates, Tesla in January had reduced its electric vehicle prices in the U.S. and Europe, nearly a week after it slashed prices at its biggest international market in China.

Musk earlier had hinted that Tesla could lower prices of its vehicles to sustain volume growth. At the company’s March 1 investor day, Chief Executive Elon Musk said the recent price cuts had improved demand of those particular models.

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