Tesla has recently lowered the prices of its Model Y electric vehicles in Germany. This move follows similar price reductions made by the company in China. Both Germany and China are not only major manufacturing centers for Tesla, but they also represent significant markets where competition from local electric vehicle (EV) firms has been on the rise.
On Tesla’s website, the price of the Model Y Long Range and Model Y Performance has been reduced by 5,000 euros ($5,400). This represents a decrease of more than 8% compared to last week. The cheaper rear-wheel drive version of the Model Y has also received a 4% discount.
Last year, Tesla implemented price cuts worldwide as a means to stay competitive with other car manufacturers and to offset the impact of higher interest rates on car financing costs. In Germany, the main competition comes from Volkswagen, the largest auto maker in the country. In fact, Volkswagen surpassed Tesla in terms of market share in Germany last year.
According to BMW Chief Financial Officer Walter Mertl, BMW has reached a tipping point where sales growth is now being predominantly driven by electric cars instead of combustion-engine vehicles. This shift reflects the changing preferences of consumers in the German market.
In China, BYD is Tesla’s biggest rival. In the fourth quarter, BYD delivered more all-electric vehicles than Tesla for the first time.
Although Tesla’s stock has experienced a 12% drop since the beginning of the year, it is still showing significant growth of 70% over the past 12 months. The company’s shares fell 1.7% to $216.18 in premarket trading.
