It seems as soon as we report on a Tesla price cut, another comes along. Tesla just reduced prices yet again in the States by a whopping $5,000 on each model. Now, it's cutting prices on the popular Model Y crossover and Model 3 sedan in Europe. In addition, Electrek says Tesla's price cuts have made their way to Singapore and Israel.
Depending on the specific market and which model you choose, you could enjoy price cuts of up to 10% off. Tesla spent a few years hiking up its prices amid long delivery wait times and fears of an economic downturn. However, ever since the end of 2022, the US EV maker has been pulling back prices and sending the global auto industry and related ventures into a frenzy.
When Tesla first started its most aggressive price cuts, many folks feared the company was struggling or facing demand issues. The price reductions were seen as a bad idea by many industry experts and financial analysts, though they started working much better than planned, and now Tesla and CEO Elon Musk are earning praise for making EVs more accessible across the globe.
As Tesla's price cuts continue, the company has released a public statement explaining its reasoning behind the situation, as well as how it has been able to pull it off. The company shared:
"Our mission is to accelerate the transition to renewable energy. Our masterplan has set a clear pathway to achieve that mission: the transformation of cost-intensive small-series products to cheaper mass-series vehicles."
Since Tesla started reducing its prices, it has seen a surge in demand. Other automakers have been forced to attempt to reduce prices as well. However, since most rely on franchised dealerships, the situation is different.
Moreover, Tesla has been making only EVs for years and has significantly scaled its business model and raised its margins. Meanwhile, many other carmakers that are just moving to EVs are still losing money on the technology.
At any rate, Tesla dropped Model 3 and Model Y prices by another ~5-10% in Germany. The company had already lowered such prices by an impressive 17% near the beginning of 2023. Most of Europe is seeing similar 5-10% price reductions now, though Tesla's prices went up slightly in Norway. In France, Model 3 buyers now get another €5,000 price cut.
Tesla cut prices on the Model Y and Model 3 in Singapore by as much as 5%. However, the 25% drop in price for the base Model 3 in Israel is perhaps the most compelling.
Check out more of the latest Tesla price cuts in the charts below: