Tesla Slashes 7,000 Euros Off Model S Price in Germany And Throughout Regions Of Europe
It was bound to happen eventually, right?
With automakers constantly cutting a couple grand off prices for electric vehicles, we knew Tesla would eventually follow suit.
The price slashing has begun.
But not here in the US.
Tesla Motors has slashed the Model S price over in Germany (and many other European countries) by a rather substantial amount recently. When the Model S first launched in Germany in late 2013, its base MSRP was 72,000 euros.
Now, buyers can get a Model S from 65,300 euros in Germany. In other locations in Europe generally by not quite as much. In the Netherlands for example, the price has dropped recently to €66,200 – about a €4,000 cut.
It’s believed that weak demand for the Model S in Germany (and Europe) led Tesla to reduce prices across the board; nothing wrong with reducing the price to sell more EVs – that is what is happening with everyone else in the market. But officially the main reason given for the change regionally is the appreciation of the currency against the US dollar – as Tesla states they have a policy of “fairing pricing in all international markets.”
It seems like a logical and decent way to price the Model S, however if trends reverse with sales lagging expectations, we imagine it would be very difficult for the auto maker to put prices back up – as the car market is just not accustomed to such a thing.
For example, Model S pricing was announced in Canada in August of 2012 for $75,200 CAD, today it stands at $77,800 (about equal to the price increases in the US). Since practically the moment it was announced, the US dollar has appreciated significantly against its Canadian counterpart – up some 12%+ since then. We don’t expect to see Tesla increasing the price in that country by $9,000 to cover the swaps anytime soon.
Editor’s Note: When Tesla announced European pricing on December 19, 2012 the Euro traded at 1.321, yesterday it closed at 1.386, up about 5% since the announcement.
So far this year only 95 Model S EVs were registered in Germany through the first 2 months, despite the fact that Tesla CEO Elon Musk believes that Germany is one of the key markets for the Model S.
Tesla has a way of quietly reducing prices in various countries. The automaker never makes an official announcement regarding price reductions, so when/if Model S prices drop in the US, don’t expect to be alerted of it by Tesla. We’ll bring that vital info to you when/if the price drop occurs though, and we believe it’s going to happen soon.
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