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Tesla TSLA-Q has slashed prices of its Model Y cars across Europe including in Germany, a week after the company cut prices in China in the face of uncertain electric-vehicle demand.

The cuts, as well as lowered price targets from brokerages UBS and Wells Fargo, sent Tesla’s shares down nearly 3 per cent, adding to what has been a poor start for the stock in 2024.

Germany-listed rivals Mercedes Benz Group, Volkswagen and Bayerische Motoren Werke fell between 2.3 per cent and 3.3 per cent. In the United States, Ford Motor and General Motors were down 2 per cent and 1.1 per cent, respectively.

Tesla reduced prices in Germany for its Model Y Long Range and Model Y Performance by €5,000 to €49,990 ($54,340) and €55,990 respectively, representing a discount of 9 per cent and 8.1 per cent compared to their previous prices.

It also cut the price of Model Y rear-wheel drive models by 4.2 per cent, according to data on Tesla’s website.

In France, the company reduced its Model Y prices by as much as 6.7 per cent. Prices were cut by up to 10.8 per cent in Denmark.

In the Netherlands, prices for the Model Y were slashed by up to 7.7 per cent and, Tesla cut prices by between 5.6 per cent and 7.1 per cent in Norway, CNBC reported.

While no reason was given for the move, EV demand has generally been slowing as a deduction in state subsidies and high borrowing costs prompt buyers to rethink big purchases.

Tesla struggled in Germany in 2023, posting a 9 per cent decline in new registrations to 63,685 vehicles, against an 11.4 per cent increase in EV sales in Europe’s top economy, according to figures from the German federal motor authority KBA.

As a result, Tesla lost its crown as the largest seller of EVs in Germany to Volkswagen, which took a 13.5 per cent share of the market compared to Tesla’s 12.1 per cent.

On Wednesday, Wells Fargo and UBS cut their price targets on Tesla’s stock by more than 8 per cent and nearly 11 per cent, respectively. The stock has already declined about 11.5 per cent so far in January, based on the last closing price.

The latest price cut comes after Tesla announced last week that it would suspend most of its car production at its factory near Berlin from Jan. 29 to Feb. 11. The company blamed a lack of components due to changes in transport routes because of attacks on vessels in the Red Sea.

Germany’s EV subsidy program, originally intended to apply until the end of 2024, ended prematurely last month, a move that was expected to hit German carmakers already struggling to bring down prices to levels offered by Chinese and U.S. competitors.

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