Tesla rolls out Model Y pricing revisions in Germany and Sweden
Tesla has begun a round of price cuts for its best-selling vehicle, the Model Y crossover, in Germany and Sweden. The price cuts were implemented about a week after a series of similar modifications to the Model 3 and Model Y were introduced in China.
With the price adjustments in place, the Model Y Long Range Dual Motor All Wheel Drive (AWD) will start in Germany at €49,990 ($54,340), a reduction of €5,000 from its previous price. The Model Y Performance, on the other hand, will start at €55,990 ($60,916), a price drop of €5,000. The base model Y with rear-wheel drive (RWD) will start at 42,990 euros ($46,772), a reduction of 1,900 euros from its previous cost.
Tesla’s price cuts for the Model Y in Germany may be part of the company’s efforts to maintain its competitiveness in the country. As pointed out in A Reuters According to the report, Germany’s electric vehicle subsidy program ended last month although it was initially expected to continue until the end of 2024. This has made the country’s electric vehicle sector more competitive, and is expected to bring some challenges to companies. The local auto industry is already finding it difficult. It competes with Chinese electric car brands and Tesla.
Interestingly, Tesla Germany’s recent price adjustments for the Model Y were implemented after the company announced that it would suspend production of the all-electric crossover at Giga Berlin from January 29 to February 11, 2024. According to the electric car manufacturer, the armed vehicle and conflicts affect in the Red Sea, negatively affecting its supply chain.
“Armed conflicts in the Red Sea and associated shifts in transportation routes between Europe and Asia via the Cape of Good Hope are also having an impact on production in Gruenheide. Much longer transportation times are creating a gap in supply chains,” Tesla noted.
It is not only Germany that received a price cut for the Tesla Model Y. According to a report issued by the company CarUp, Tesla Sweden has also implemented a price reduction for its all-electric crossovers. A look at the Model Y’s order page in Sweden shows that the car has seen price cuts of up to SEK 55,000 depending on the variant.
After the price adjustment, the price of the base model Y RWD in Sweden now starts at 534,170 SEK, a decrease of about 50,000 SEK. On the other hand, the Model Y Long Range Dual Motor AWD saw its price drop from SEK 669,000 to SEK 614,170, a decrease of approximately SEK 55,000. In a commentary, Swedish Tesla noted that the Model Y’s lower price is partly due to production efficiency.
“In our quest to accelerate the world’s transition to sustainable energy, a key focus for us in 2024 is to enable Tesla to become affordable to more and more people. Our goal is to achieve this by leveraging our innovative engineering and manufacturing processes, which make production more efficient than “In terms of time and cost. By passing on the efficiency gains to our customers, we can make our product more accessible to everyone. Tesla noted that the Model Y is now available at a price of 534,170 Swedish krona.”
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