Tesla lowers prices in Germany

Tesla had already significantly reduced the prices for its vehicles in the USA and China in recent weeks. Now a corresponding price reduction has also followed in Germany. As a result, a Tesla can now be had for less than 40,000 euros.

Price reductions for many models

The price cuts affect not just individual vehicles in Tesla’s portfolio, but a large proportion of them. For example, the lowest-priced Model 3, as well as the Model Y, have been reduced in price. The corresponding vehicles with dual motors are also now available at a lower price. The entry-level price for a Model 3 is now 43,990 euros, while the Model Y now costs at least 44,890 euros. In each case, the prices apply the basic equipment and represent a reduction of 6,000 and 9,100 euros, respectively. For more highly equipped versions, however, the price reductions are significantly lower. The price of the Y performance version, for example, has only been reduced by 500 euros.

Tesla justifies the price reductions with optimizations in the production process, which lowered the production costs of the vehicles. However, this is probably also due to the need to adapt prices to the competition, which has now increased noticeably. In Germany, there is also the creeping expiry of government subsidies for the purchase of electric vehicles, which ultimately makes the cars more expensive.

With subsidy less than 40,000 euros

However, government premiums are still available – although they are already lower than last year. The maximum subsidy granted by the state for the purchase of an electric car is 4,500 euros. If this is applied to the cheapest Tesla, the purchase price is ultimately less than 40,000 euros. For a powerful e-car with a range of 500 kilometers, this is a strikingly low price. The attractiveness of Teslas could thus increase in this country. This is especially true against the backdrop of inflation and the strained economic situation, which make many people shy away from larger investments.

However, it should also be noted that a new Model 3 will be launched in the course of the year. This will be technically optimized compared to its predecessor. Anyone who invests in a new Tesla vehicle will probably no longer be up to date with the latest technology by the end of the year. This could be an aspect that discourages people, especially those for whom the price is not the most compelling argument, from buying at the moment.