In Germany, rear-wheel-drive versions of the Model Y are currently on sale for 42,990 euros ($46,760.65), approximately 4.2% off the previous retail price. The price of the Model Y Long Range will be 8.1% lower than the previous price at 49,990 euros, while the Model Y rear-wheel drive model will be sold at 42,990 euros, down 4.2%.
In France, Tesla has reduced the price of Model Y cars by up to 6.7%, and in the Netherlands, it has reduced the price of Model Y by up to 7.7%. In Norway, the company cut prices by 5.6% to 7.1%.
Tesla shares fell 1.6% in pre-market trading in the US.
The price cut comes after Tesla announced price cuts for its Model 3 and Model Y vehicles in China. The company has aggressively lowered the prices of its cars in China over the past year or so, undercutting local rival BYD.
Tesla has cut the price of the Model 3 by 6% compared to last December, and the price of the Model Y by 11%, according to data from JL Warren Capital.
Tesla’s German operations have been shut down in the Red Sea after the Iranian-backed Houthi group launched attacks on ships navigating key shipping lanes, wreaking havoc on global trade and drawing international criticism. affected by the confusion.
As a result of the turmoil in the Middle East, Tesla announced last week that it would halt most vehicle production at its Berlin-Brandenburg factories, citing parts shortages due to changes in transportation routes.
Competition in the electric vehicle market has intensified over the past year, with Tesla facing off against many other automakers. BYD, the Chinese automaker backed by legendary investor Warren Buffett, will overtake Tesla as the world’s largest EV maker in 2023.
According to statistics from Germany’s federal motor vehicle authority KBA, Volkswagen overtook the U.S. automaker last year with a market share of 13.5%, ahead of Tesla’s 12.1%, making Tesla the country’s EV king.