Tesla is reducing its prices in Germany and the USA
Tesla is lowering the prices for its electric cars in Germany and the USA. The reason: weakening demand and ever-increasing competition. The company had previously reduced its prices in China.
E-car manufacturer Tesla has reduced its prices in Germany and the USA, in some cases significantly. The company informed the news agency Reuters according to, on Thursday, January 12, 2023, at times on its website with.
Depending on the configuration and model, there will be one to 17 percent less in the future. This apparently applies to both the Model 3 sedan and the Tesla best-selling Model Y.
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Tesla is reducing its prices in Germany, Austria and Switzerland
In future, lower prices will also apply in France, Austria and Switzerland. In the USA, there will even be six to 20 percent less purchases in the future. Subsidies in the form of a tax credit of up to US$ 7,500 have also been in effect there since the beginning of January. According to Reuters, the price for a Tesla Model Y will fall by up to 31 percent for US customers.
Tesla had previously reduced its prices in China and the Asian market. In connection with the price cuts in Germany and the USA, this corresponds to a trend reversal and definitely represents a change in strategy. Tesla had previously always increased its prices due to high demand.
Change of strategy: Will the new Tesla prices trigger a price war?
In the meantime, however, the e-car manufacturers are looking at falling demand. This is probably due to the current economic situation as well as the increasing competition. According to Reuters the company roughly missed estimates on Wall Street in the fourth quarter of 2022 for its deliveries.
According to analysts, the current price cuts should stimulate demand again, but also increase the pressure on the competition. The result could in turn be a veritable price war if other providers feel compelled to adjust their prices as well.
Tesla stock plummeting
The fat years at Tesla meanwhile seem to be over. The company’s stock has also been under pressure for months. In the past year alone, the e-car maker’s securities have lost around 65 percent in value. This ultimately led to an unprecedented loss of wealth from Tesla CEO Elon Musk.
While Musk’s fortune according to Bloomberg In November 2021 it was still around 340 billion US dollars, it has now shrunk to around 132 billion US dollars. Investors also criticized Elon Musk’s dual role as Tesla and Twitter boss.
Instead of focusing on the electric car maker, Musk would spend too much time cleaning up Twitter after its acquisition. Musk had also sold billions of dollars in Tesla shares to take over the short message service.
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