Tesla has cut Model Y prices in Europe following a similar move in China, aiming to compete with BYD. In Germany, the Model Y Long Range now costs €49,990, down by €5,000 (9% discount), while the Model Y Performance is priced at €55,990 after a €5,000 reduction (8% discount).
This adjustment comes as the German government ended EV incentives, prompting several automakers, including Volkswagen and BYD, to reduce prices. Despite Tesla’s cuts being less drastic than BYD’s 15%, it reflects a measured response. In 2023, the Model Y was Germany’s top-selling BEV with 45,800 registrations, but Tesla lost its leading position to Volkswagen.
The Model Y prices were also reduced in France (up to 6.7%), the Netherlands (up to 7.7%), and Norway (up to 7.1%). BYD is implementing up to 15% price cuts on its EVs in Germany, aiming for 10% market share post-production in Hungary. VW, too, has lowered prices on its ID line in various countries. While VW outpaced Tesla in German sales, Tesla excelled in France with 37,124 Model Y units sold in 2023. In Norway, where 82% of sales are EVs, VW adjusted prices to stay competitive.
Tesla faces production halts at Giga Berlin due to delayed battery deliveries amid the Red Sea shipping crisis. European countries are scaling back EV incentives, with Germany ending its subsidy program in December.
Automakers like VW, Stellantis, Mercedes, and Audi have committed to absorbing some EV incentive costs. As countries transition post-subsidies, more industry-wide price adjustments are expected. Tesla shares were down 1.6% in U.S. premarket trading.
