A week after announcing price reductions for its Model 3 and Model Y vehicles in China, Tesla has reduced the cost of its Model Y vehicles in a number of European nations. Based on information from the local versions of the company’s websites in each of those areas, the company lowered the pricing of its cars offered in Germany, France, Norway, and the Netherlands.

The price of the Model Y rear-wheel drive model in Germany is currently 42,990 euros ($46,760.65), which is around 4.2% less than the car’s prior retail price. The retail price of the vehicle Y rear-wheel drive vehicle has decreased by 4.2% to 42,990 euros, while the Model Y long range model now costs 49,990 euros, an 8.1% decrease from the previous pricing.

Prices for Tesla’s Model Y vehicles were slashed by as much as 6.7% in France and as much as 7.7% in the Netherlands last year. The corporation lowered prices in Norway by 5.6% to 7.1%.

Premarket trading for Tesla shares in the US saw a 1.6% decline.

The price decreases follow Tesla’s announcement of lower prices for its Model 3 and Model Y vehicles in China. Over the past year or so, the business has aggressively lowered the price of its cars in China, beating BYD, a local competitor.

Based on data from JL Warren Capital, Tesla reduced the price of the Model 3 by 6% from December of last year and the price of the Model Y by 11%.

The Houthis, an organisation supported by Iran, initiated attacks on ships navigating a crucial waterway in the Red Sea, disrupting global trade and attracting criticism from throughout the world. This has had an impact on Tesla’s German operations.

Last week, Tesla said that it would halt most car manufacturing at its Berlin-Brandenburg facility owing to the unrest in the Middle East. The company cited a shortage of components as a result of altered transportation routes.

Over the past year, there has been an increase in competition in the electric vehicle market, with Tesla competing against numerous other automakers. In 2023, BYD, a Chinese automaker supported by renowned investor Warren Buffet, overtook Tesla as the leading global producer of electric vehicles.

Volkswagen overtook Tesla as the market leader for electric vehicles in Germany last year, outselling the American carmaker with a 13.5% market share to Tesla’s 12.1%, according to data from the German federal automotive authority KBA.

(Adapted from WionNews.com)