Tesla lowers prices again (and the market soon?)
After a year of high prices, Tesla has once again reduced the prices of the two cars that open its range: as of this morning, the Model 3 starts at 39,990 euros, including the environmental bonus, and the Model Y starts at 41,990 euros. The discount is especially great for a sedan, as the Model 3 previously sold for €53,990 and no longer benefits from the bonus. Overnight for the customer, this discount reached at least 14,000 euros on this car!
The gap is less significant for the French oddity, the Model Y, the cheapest Tesla since the Propulsion version was introduced at the end of the summer. It sold for €49,990 until yesterday, but no longer benefits from the eco bonus, while the new offer places it just below the limit. As a result, the difference on the final invoice for the customer remains € 8,000, this time with the limitation of taking the base model without any options. But in this regard, Tesla also broke the price of black: it is now free, as was the standard white until then.
In either case, the new rules of the environmental bonus may allow you to buy an even cheaper Tesla. Households with a taxable income of less than €14,089 from the beginning of the year are entitled to an enhanced environmental bonus of €7,000. Enough to buy a Model 3 for €37,990 or a Model Y for €39,990. It’s not as much as 2021 prices, as you could drop below €37,000 then, but it’s there.
Although Tesla implemented unprecedented promotions to clear inventory at the end of last quarter, these reductions formalize and maintain the manufacturer’s confidence in production capacity for the coming months. Shortages of components and high prices of materials are reduced, especially as the company emphasizes very short delivery times. Like the Model Y ordered today, the new Model 3 could be delivered by the end of the current quarter, perhaps unique in the industry. It has nothing to do with May 2022, when Tesla is considering stopping sales due to an overfilled order book.
Deadlines are less often put forward by historical manufacturers, but the waiting period for electric cars rarely falls below 6 months, and can even reach a year or more, depending on the make and model. Between these shortened deadlines and these incredible prices, Tesla could break the market again as early as 2021. By comparison, a Megane E-Tech with a similar battery to the Model 3 starts at around €42,000, excluding bonuses at entry. level, but with lower equipment and the addition of a heat pump and drivetrain that comes close to what Tesla offers, sells again for more.
Admittedly, unlike the Tesla model, where the price is unique, it is the displayed price that can be negotiated with a discount. After all, we can repeat the maneuver with all competitors and see the American firm strike hard again. The Kia EV6 starts at almost the price of a Model Y with ridiculous equipment compared to the entry level and lower real autonomy. The Skoda Enyak 80 tops out at €53,000 at entry level, and that’s without even entering German premium territory with the options catalog offered as standard in America, without any advanced driving aids or comfort on offer.
Will Tesla be able to maintain these very low prices and production times over the next few months? That’s the whole question, but the manufacturer has shown confidence after last week’s price cuts in China, noting that the price cuts are for cost optimization rather than a demand problem. . Perhaps what allows it to crush its historical rivals, who don’t have the same production capacity and can’t easily cut margins to lower their prices?
More anecdotally, these steep drops should significantly lower prices for Model 3s on the used market. The move started with the arrival of the Model Y Propulsion, but as long as the manufacturer maintains these new prices for new cars, used prices should remain low until further notice.