Tesla expands its price cut to Europe, Singapore, and Israel
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Tesla (NASDAQ:TSLA) has dropped the price of its electric vehicles in Europe, Israel, and Singapore in order to increase demand, expanding a worldwide discount push that began in China in January, according to data on its website on Friday, reported by Reuters.
Because of a scaling up and improvement in manufacturing capacity, the maker of electric vehicles reduced prices in a number of European countries, including Germany and France.
In Germany, the company reduced the price of its Model 3 by 2,000 euros, or 4.5%, to â¬41,990, and the Model Y Performance by 9.2% to â¬60,990, per the data on its website on Friday, marking the company's second price decrease this year following a 1% - 17% cut in January.
In addition, the Model 3 long range and performance variants in Germany have been reduced by 9.8% to â¬54,990.
It reduced the cost of its Model 3 and Model Y vehicles in Singapore by 4.3% to 5%, according to its local website.
Tesla likewise reduced pricing in Israel, with the base rear-wheel drive Model 3's price reduced by 25% after an initial wave of global price reduction in January.
Tesla has reduced the price of its base Model 3 by 11% in the United States since the beginning of the year, with a 20% drop on its base Model Y.
Despite giving discounts in the United States, China, Japan, Australia, and South Korea to encourage demand, the company's Q1 deliveries only increased by 4%.
The Hong Kong Economic Times reported earlier this week that the two models will experience considerable price cuts in China, with the Model 3 Performance edition having a 14.7% sticker price decrease and the extended range version of the Model 3 seeing an 11% discount. According to the report, Model Y pricing would be reduced by roughly 9%.
Meanwhile, Tesla will not be present at China's largest annual auto show, which will be held next week in Shanghai from April 18 to 27, according to event organisers.
The company is all set to release its first-quarter earnings next week.
Shares down 1.5% premarket.