Tesla has slashed prices for its electric vehicles (EV) in Europe, Israel and Singapore, expanding a global discount drive it began in China in January.
Tesla last week reported first-quarter deliveries up 4 percent from the previous quarter despite offering discounts in the United States, China, Japan, Australia and South Korea aimed at spurring demand, Reuters news report said.
Tesla announced its fifth vehicle price cut this year in the U.S. market. Tesla and other EV makers are bracing for challenging market conditions as United States, one of the top EV markets, is in the process of introducing tougher standards that will limit EV tax credits.
In 2022, Tesla, the world’s most valuable automaker also missed CEO Elon Musk’s delivery target of 50 percent growth, held to a 40 percent increase due to logistical issues and slowing demand.
Tesla said on Friday it cut prices in numerous European markets including Germany and France because of a scaling up and improvement in its production capacity.
Following are details of the price cuts:
CHINA
Tesla reduced prices for all versions of its Model 3 and Model Y cars in China by between 6.0 percent and 13.5 percent in January, according to Reuters calculations.
In February, the carmaker raised prices of the performance and long-range versions of its Model Y mid-size sport utility vehicles (SUV) in China.
In the second such price increase, starting prices of the two versions of Model Y in China were increased by 2,000 yuan each to 311,900 yuan ($44,983.20) and 361,900 yuan.
The performance Model Y remains 9 percent cheaper than before the price cuts, while the long-range version is 13 percent cheaper.
JAPAN
Tesla cut the prices of its Model 3 and Model Y cars by about 10 percent each in Japan for the first time since 2021. The price for the Model 3 rear-wheel drive version is now 5.369 million yen ($39,501.18), down from 5.964 million yen.
SOUTH KOREA
Tesla’s price cuts differed from model to model, but ranged from about 6 million won to 10 million won ($7,702.74), a Tesla sales official in South Korea said.
The price of Tesla’s basic Model 3 rear-wheel drive vehicle was listed as 64.34 million won ($50,637) on the company’s website on Friday. Its Model Y Long Range sports utility vehicle was 84.999 million won.
UNITED STATES
On April 7, Tesla announced its fifth vehicle price reduction this year in the U.S. market, cutting prices by between 2 percent and nearly 6 percent.
Tesla has cut the price of its base Model 3 by a cumulative 11 percent since the beginning of the year, with a 20 percent reduction on its base Model Y, according to Reuters calculations.
GERMANY
Tesla cut prices on the Model 3 and the Model Y by about 1 percent to almost 17 percent, depending on the configuration, in January.
In April, it lowered the price of the Model 3 by 2,000 euros, or 4.5 percent, to 41,990 euros ($46,462), according to data on its website.
The carmaker also cut the price for the Model 3 Performance version to 54,990 euros, a discount of 9.8 percent from the price previously.
The price of its Model Y Performance version was slashed by 9.2 percent to 60,990 euros. The Model Y rear-wheel drive and long range prices remained the same.
FRANCE
Customers buying the Model 3 for 44,990 euros ($47,860.36) will now get a further price reduction through a government subsidy of 5,000 euros. The upper limit for the EV scheme is 47,000 euros.
SINGAPORE
Tesla cut prices of its Model 3 and Model Y vehicles by between 4.3 percent and 5 percent in April.
Tesla cut prices on real-wheel drive version of both Model 3 and Model Y by S$4,000 ($3,020), and dual motor all-wheel drive version of the two models by S$5,000, its website showed.
ISRAEL
The price of the base rear-wheel drive Model 3 was 152,990 shekel ($41,953) as of April 14, down 25 percent from its price after an initial round of global price cuts in January.