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Factbox-Tesla cuts more prices in a bid to spur demand

Published 04/14/2023, 05:36 AM
Updated 04/14/2023, 05:40 AM
© Reuters. FILE PHOTO: The logo of car manufacturer Tesla is seen at a branch office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photo
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(Reuters) - Tesla (NASDAQ:TSLA) Inc on Friday slashed prices of its electric vehicles in Europe, Israel and Singapore, extending a global discount drive it began in China in January while raising concern about its industry-leading profit margin.

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% and 13.5% in January, according to Reuters calculations.

In February, however, 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% cheaper than before the price cuts, while the long-range version is 13% cheaper.

JAPAN

Tesla cut the prices of its Model 3 and Model Y cars by about 10% 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% and nearly 6%.

Tesla has cut the price of its base Model 3 by a cumulative 11% since the beginning of the year, with a 20% 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% to almost 17%, depending on the configuration, in January.

In April, it lowered the price of the Model 3 by 2,000 euros, or 4.5%, 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% from the price previously.

The price of its Model Y Performance version was slashed by 9.2% 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% and 5% 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.

© Reuters. FILE PHOTO: The logo of car manufacturer Tesla is seen at a branch office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photo

ISRAEL

The price of the base rear-wheel drive Model 3 was 152,990 shekel ($41,953) as of April 14, down 25% from its price after an initial round of global price cuts in January.

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