More Tesla Price Cuts Aimed At Spurring Demand

A major global discount drive, which began in China in January, was extended by Tesla Inc (TSLA.O) on Friday with price cuts on its electric cars for Europeans, Israelis, and Singaporeans, raising concerns about the company's industry-leading profit margins.

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Detailed information about the price reductions can be found below:

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China

As per Reuters calculations, Tesla reduced prices between 6.0% and 13.5% on all versions of its Model 3 and Model Y cars in China in January in response to serious sales slumps in the automotive industry.

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Although the company was planning to raise prices in China starting in February, the manufacturer decided to raise prices for its mid-size Model Y sport utility vehicles (SUVs) in the performance and long-range versions.

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It has been announced that the two versions of the Model Y in China will be increased by 2,000 yuan at the beginning of the month, to 311,900 yuan ($44,983.20 for the Model Y Performance) and 361,900 yuan ($44,983.20 for the Model Y Prestige).

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As a result of the price cuts, the performance Model Y remains 10% cheaper than it was before, while the long-range Model Y remains 13% less expensive than before.

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Japan

It has been reported that the price of Tesla's Model 3 and Model Y cars have been cut by about 10% in Japan for the first time since 2021. The price of Tesla's Model 3 rear-wheel drive version has been lowered from $5,964 to 5.369 million Yen.

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South Korea

A Tesla sales official in South Korea told Reuters that the price cuts differed from model to model, but the exact amounts ranged between 6 million won and 10 million won ($7,702.74).

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As of Friday, the company's website reflected a price of 64.34 million won ($50,637) for Tesla's basic Model 3 rear-wheel drive vehicle. Its Model Y Long Range sports utility vehicle was priced at 84.999 million won ($84,592).

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United States

In an announcement made on April 7th, Tesla announced that it would be lowering prices by between 2% and almost 6% on its vehicles in the U.S. market this year.

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The price of Tesla's base Model 3 has been cut by a cumulative 11% since the start of the year, which has been accompanied by a 20% price reduction on Model Y, according to figures compiled by Reuters.

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Germany

As of January 1, Tesla has cut the price of its Model 3 and Model Y by about 1% to almost 17%, depending on how they are configured, depending on their configuration.

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The Model 3 price was lowered by 2,000 euros in April, or 4.5%, according to data on its website, which shows that it costs 41,990 euros ($46,462), or 40 percent less than its April 2014 price.

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A discount of 9.8% was also given on the Model 3 Performance version of the car, which is priced at 54,990 euros, a price reduction of 9.8% from its previous price.

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In order to make the Model Y more affordable, the price of the Performance version has been cut by 9.2% to 60,990 euros, while the prices of the rear-wheel drive model as well as the long range version have not changed.

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France

Government subsidies of 5,000 euros will now be offered to Model 3 buyers who pay 44,990 euros ($47,860.36). The maximum subsidy offered is 47,000 euros.

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Singapore

Tesla announced a price cut of between 4.3% and 5% in April for its Model 3 and Model Y electric vehicles.

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A selection of the real-wheel drive versions of both the Model 3 and Model Y are now available on Tesla's website for a reduced price of S$4,000 ($3,020), and dual-motor all-wheel drive versions of both models are now available for a discounted price of S$5,000.

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Israel

According to the Model 3 press release, the base rear-wheel drive Model 3 was now available for 152,990 shekels (41,953) at the end of April. This is a 25% drop from its price in January, following an initial round of global price cuts.