Tesla slashed Model Y prices in many European countries overnight, days after the U.S. EV giant reduced Model 3 and Model Y prices in China. Tesla stock fell modestly.
In Germany, Tesla cut the Model Y price by 4.2%-9.1%. The Model Y Standard Range+ was cut by 1,900 euros (about $2,061) to 42,900 euros ($46,542). The Model Y Long Range and Performance variants were reduced by 5,000 euros, to 49,900 euros and 55,990 euros, respectively.
Tesla Model Y prices were cut by 5.7%-6.7% in France by 4.3%-7.7% in Netherlands, 5.6%-7.1% in Norway, 7.4%-9.2% in Italy and 6.9%-10.9% in Denmark.
Model Y inventory has swelled in Europe as sales there dropped every quarter since Q1. Germany ended EV subsidies abruptly on Dec. 17, adding to overall EV sales pressures.
Tesla also is offering 0% financing, another costly incentive.
Germany and France are the biggest EV markets in Europe, with Norway a significant market as well.
The new Tesla price cuts have come even as Tesla Berlin is set to suspend production for two weeks starting Jan. 29, which the EV giants claims is due to parts issues stemming from Red Sea shipping woes.
The price cuts will add to concerns that Tesla profit margins will continue falling in 2024.
Tesla had already offered major discounts on Model Y inventory in Europe, so actual selling prices won't fall as much as the new reductions suggest. But prior price cuts have been followed by renewed inventory discounts.
Tesla Stock
Tesla stock fell 2% to 215.55 after hitting a two-month low intraday. Shares rose 0.5% to 219.91 in Tuesday's market trading, reversing higher. TSLA stock is below its moving averages following four straight weekly declines, including last week's 7.8% tumble.
Tesla China Price Cuts
On Friday, Tesla cut Model 3 prices by 3.9%-5.9% in China, while cutting two Model Y variants by 2.1%-2.8%. The Model 3 price cuts were partially offset by the end of an insurance subsidy for Model 3 inventory purchases.
China EV makers Li Auto and Nio have announced substantial discounts in the past week for 2023 models ahead of 2024 model facelifts.
Last week, EV giant BYD announced big cuts in Germany. BYD, which passed Tesla in fully electric vehicles in Q4, had priced its vehicles high in Germany and other European countries.
Li stock plunged sank 3.8% Wednesday, hitting a seven-month low. Nio stock shed 3.8%, to the lowest price since mid-2020, after diving 8.65% on Tuesday. BYD stock, which showcased its driver-assist and other smart-car tech Tuesday, fell 4.1%, hitting a 10-month low.
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