why have their prices dropped in Asia and not in Europe?

In China, Tesla has drastically reduced the prices of its two most popular cars: the Model 3 and the Model Y. With production ramping up, will the manufacturer struggle to sell all of its inventory?

Photo of Berlin Gigafactory // Source: Tesla

After finishing 2022 with record deliveries and production, Tesla is looking to confirm that it remains a major manufacturer in terms of electric vehicles in 2023. Its first market, China, is competing very hard with many brands that are starting to come to Europe. To meet this fierce battle, Tesla simply lowered the prices of the Model 3 and Model Y.

A technique that still works today

This isn’t Tesla’s first attempt to convince buyers to order a car. After a brief return from the referral program, one-off price cuts in Europe, Asia and the US at the end of the year, free Supercharged after Christmas or even options offered, Elon Musk’s firm seems to be struggling to convert all offers. its production turns into cars for sale.

The port of Shanghai is full of Tesla Model Y ready for export

Indeed, with according to some analysts, there are more than 70,000 vehicles in stock, and factories are running at full speed, it’s time for Tesla to change its pricing policy if the brand wants to sell its stock quickly. It’s over Compared to the last known price for the Tesla Model 3 Propulsion in China, it has fallen by around 5,000 euros, and for the Tesla Model Y by around 4,500 euros. (about 10-15% reduction).

Similar price drops were observed in Japan, Australia and South Korea. Following this, Tesla explained to the Chinese media that behind these price adjustments are many optimizations of the production chain, as well as technical innovations at all levels, which make it possible to produce at a lower cost than before. .

If this explanation is correct, then we can observe a decrease in prices in Europe as well. Indeed, most Teslas sold in the Old Continent come from the Shanghai Gigafactory.

With these new prices, Both cars are cheaper now than they were in January 2021, and we can expect this decline to spread to other markets as well. Recall that in France, the Tesla Model 3 was entitled to the maximum environmental bonus for several months in 2021, which allowed it to be purchased for less than 37,000 euros.

Since then, successive price increases have made it considerably more expensive and no doubt affected sales in France. For an entry-level Tesla Model 3, you really have to pay more than €50,000 to date, making it out of reach for many. The Tesla Model Y is the cheapest Tesla in France, starting at €49,990 today.

Be careful, don’t believe these fake news.

Final invoices with correct prices are a good start, all Teslas in stock in Europe are -3000€ from today.

Tesla wants to believe in the beetle so that there is no wave of disaffected people. 🙂 https://t.co/QIeB2syKCw pic.twitter.com/dkcilAvlWg

— Bob Jouy (@bobjouy) December 22, 2022

However, some reductions in the price of in-stock vehicles at the end of 2022 allowed many buyers to take advantage of the Tesla Model Y Propulsion, which costs 40,990 euros after deducting the environmental bonus.

The manufacturer should have recognized the opportunity to lower prices to increase sales figures, and it is only a matter of time before what happens in China spreads to other markets. Could this be Tesla’s popular comeback at a more affordable price?

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