Tesla Model Y, equipped with FSD system. There are three front-facing lenses under the windshield near the rearview mirror.
Mark Liang | The Washington Post | Getty Images
Tesla Tesla cut the price of its Model Y cars in several European countries late Tuesday, a week after it announced similar price cuts for its Model 3 and Model Y cars in China.
The company lowered prices on cars sold in Germany, France, Norway and the Netherlands, according to data from the local version of the company’s website in each market.
In Germany, the rear-wheel-drive Model Y is currently priced at 42,990 euros ($46,760.65), a discount of approximately 4.2% from the car’s previous retail price. The Model Y long-range version is currently priced at 49,990 euros, a decrease of 8.1% from the previous price, while the retail price of the Model Y rear-wheel drive model is 42,990 euros, a decrease of 4.2% from the previous price.
In France, Tesla reduced the price of Model Y cars by 6.7%, while in the Netherlands, Tesla reduced the price of Model Y by 7.7%. In Norway, the company cut prices by 5.6% to 7.1%.
Tesla shares fell 1.6% in U.S. pre-market trading.
The price cut comes after Tesla announced price cuts for its Model 3 and Model Y cars in China. The company has slashed vehicle prices in China over the past year or so, making local rival BYD less competitive.
Data from JL Warren Capital shows that compared with December last year, Tesla lowered the price of Model 3 by 6% and lowered the price of Model Y by 11%.
Tesla’s German operations have been hit by disruptions in the Red Sea after Iran-backed Houthi rebels launched attacks on ships crossing key shipping lanes, wreaking havoc on global trade and drawing international criticism.
Tesla said last week it would suspend most vehicle production at its Berlin-Brandenburg plant due to unrest in the Middle East, citing parts shortages caused by changes in shipping routes.
Competition in the electric vehicle market has heated up over the past year, with Tesla facing challenges from many other automakers. Chinese automaker BYD, backed by legendary investor Warren Buffett, overtook Tesla in 2023 to become the world’s largest electric vehicle maker.
According to data from the German Federal Motor Vehicle Administration KBA, Volkswagen replaced Tesla as the king of electric vehicles in Germany last year, outselling the U.S. automaker and accounting for 13.5% of the market, while Tesla’s market share was 12.1%.
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