Tesla massively cuts prices

The Californian electric car pioneer Tesla has massively slashed prices and is now selling the Model Y SUV for 9,100 euros cheaper than before at 44,890 euros, while the Model 3 is priced at 43,990 euros, 6,000 euros cheaper, putting it on par with a conventionally powered BMW 3 Series. Apparently, the combination of high production and waning customer interest has now resulted in a gap between vehicle supply and demand. Recently, the manufacturer was already forced to offer discounts and incentives, such as free charging at Superchargers, provided the vehicle was purchased by the end of 2022.

In 2022, the manufacturer sold 1.3 million cars, apparently leading to a certain market saturation. Additionally, particularly in China, manufacturers such as Nio, Zeekr, or MG are gradually reaching the level of the Californians in terms of both design and technology. Against this backdrop, prices for the volume models Y and 3 had already dropped by nearly a quarter starting in September. Several analysts assess that the models are gradually aging. Furthermore, the charismatic Tesla CEO Elon Musk is currently tarnishing his car brand's image through erratic and right-wing populist behavior on the short messaging service Twitter, which he acquired, as a recent Civey survey among car enthusiasts confirmed. At least the price reductions might also stimulate the used car market and make second-hand electric cars more affordable.