Tesla has dropped prices of several models in multiple international markets, including China and Europe, following price reductions in the United States.
In China, Tesla cut prices by ¥14,000 (C$2,650/US$1,930) for its locally produced Model 3 and Model Y, as well as the imported Model S and Model X. With the reductions, the starting price for the Model 3 Rear-Wheel-Drive (RWD) is now ¥231,900 (C$43,950/US$32,030), a drop of about 5.7%. These price cuts are intended to strengthen Tesla’s position in the world’s largest and most competitive auto market, especially in the electric vehicle (EV) sector.
Here’s the full list of price changes in China.
| Model | Previous Price | Latest Price | Change % | Change |
|---|---|---|---|---|
| Model 3 | ¥245,900 | ¥231,900 | -5.69% | –¥14,000 |
| Model 3 Long Range | ¥285,900 | ¥271,900 | -4.90% | –¥14,000 |
| Model Y | ¥263,900 | ¥249,900 | -5.31% | –¥14,000 |
| Model Y Long Range | ¥304,900 | ¥290,900 | -4.59% | –¥14,000 |
| Model Y Performance | ¥368,900 | ¥354,900 | -3.80% | –¥14,000 |
| Model S | ¥698,900 | ¥684,900 | -2.00% | –¥14,000 |
| Model S Plaid | ¥828,900 | ¥814,900 | -1.69% | –¥14,000 |
| Model X | ¥738,900 | ¥724,900 | -1.89% | –¥14,000 |
| Model X Plaid | ¥838,900 | ¥824,900 | -1.67% | –¥14,000 |
Similarly, in Germany, the price of the Model 3 RWD was reduced by €2,000 (C$2,930/US$2,130) to €40,990 (C$60,000/US$43,700). The Model 3 All-Wheel Drive (AWD) saw the same €2,000 price cut, now starting at €51,990 (C$76,100/US$55,450).
A Tesla spokesperson confirmed with Reuters there were similar price cuts in other European, Middle Eastern, and African countries.
Despite all of the changes around the world, Canada was unaffected and all prices for all vehicles remain unchanged.
The price reductions are part of a larger strategy by Tesla as it navigates a challenging period marked by high interest rates and economic uncertainty. The company has recently announced layoffs affecting more than 10% of its global workforce, reduced the price of its Full Self-Driving software in Canada and the US, announced the end of its referral program, and more.
As for the reason behind all of the vehicle price cuts recently, CEO Elon Musk said the company has to adjust prices frequently to match production with demand.
Other cars change prices constantly and often by wide margins via dealer markups and manufacturer/dealer incentives. Only a fool thinks the “MSRP” is the real price.
— Elon Musk (@elonmusk) April 21, 2024
Tesla prices must change frequently in order to match production with demand.
