Tesla slashes slashes prices by up to 20% as competition picks up

In a bid to boost customer demand, Tesla slashes the prices of its most popular electric cars in Europe and the USA.

This decision comes in light of growing competition from traditional carmakers who are making their play in the electric vehicle (EV) industry, and expectations of a global economic slowdown.

Germany saw prices chopped by up to 17 per cent, with Tesla’s bestseller Model Y seeing its price drop to €44,890 (a €9,100 cut). Meanwhile, the UK saw overall prices drop between 10-13 per cent, saving them between £5,500 (€6,206) and £7,000 (7,894).

While many Tesla enthusiasts welcome this decision, it has upset more than 16,000 customers who bought the company’s best-selling models in 2022, according to the BBC.

A UK Tesla owner posted in an online community complaining, “I just picked up the car yesterday. What should I do? Go to Tesla and give back the car? I can’t believe after a few hours from picking up the car I lost around £5,000 (€5,638).”

Customers around the world had similar reactions following the price cut, many of whom are calling for compensation, with customers in China demonstrating outside the company’s distribution centres.

To avoid a similar reaction in the US and Europe, Tesla assured customers who ordered their cars but haven’t yet received them, that they will be charged the new, lower price.

The EV maker has grown from being a niche brand to a mainstream one, with demand for its products consistently outpacing supply. However, the company’s competitive advantage is starting to dwindle with a growing selection of alternatives offering cheaper vehicles.

China and USA are leading the way in fostering start-ups focused on creating EVs, and traditional carmakers in Europe are starting to catch up to the trend.

Globally, Telsa’s deliveries went up by 40 per cent in 2022, however, this was below market expectations causing the company’s share price to drop by 65 per cent throughout the year. Aside from denting investor confidence, it also toppled Elon Musk’s position as the richest person in the world. He even broke the record for the largest loss of personal fortune in history, having lost $182 billion (€168 billion) since November 2021.

Nevertheless, demand for Tesla vehicles and other EVs is expected to grow, and the industry is still, relatively speaking, in its infancy.