Tesla Inc. has made a significant move by reducing the prices of its Model Y cars in Germany, closely following the recent price adjustments for Model 3 and Model Y in China.
In this latest adjustment, Tesla has cut the prices for the Model Y Long Range and Model Y Performance by 5,000 euros, now priced at 49,990 euros ($54,340) and 55,990 euros, respectively. These reductions represent discounts of 9% and 8.1% compared to the previous prices.
Additionally, Tesla has also decreased the price of the Model Y rear-wheel drive models by 1,900 euros, a 4.2% reduction, bringing the new price to 42,990 euros, as per information available on its website.
This move comes in the wake of Tesla’s recent announcement about the suspension of most car production at its factory near Berlin from Jan. 29 to Feb. 11. The company attributes this suspension to a shortage of components resulting from changes in transport routes due to incidents in the Red Sea.
It’s noteworthy that the price adjustments in Germany coincide with the premature ending of the country’s electric vehicle subsidy program, originally slated to run until the end of 2024.
The conclusion of this program was expected to impact German automakers, who were already grappling with the challenge of aligning their prices with those offered by Chinese and U.S. competitors.