Jan 13 (Reuters) – Tesla ( TSLA.O ) cut prices for its electric vehicles in the United States and Europe, the carmaker’s website showed, extending a new strategy of aggressive discounting after missing Wall Street delivery estimates.
The U.S. price cuts, announced late on Thursday U.S. time for the Model 3 sedan and Model Y crossover SUV, ranged from 6% to 20% from pre-cut prices, according to Reuters calculations. That’s before factoring in federal tax credits of up to $7,500 that went into effect for many electric vehicle models in early January.
It also cut prices of its Model X luxury crossover SUV and Model S sedan in the US.
In Germany, Tesla cut the prices of the Model 3 and Model Y — its global best-sellers — by about 1% to 17%, depending on the configuration. It also cut prices in Austria, Switzerland and France.
For a US long-haul Model Y buyer, the new Tesla price, along with the US subsidy that took effect this month, amounts to a 31% discount. In addition, Tesla’s move expanded the vehicles eligible for the Biden administration’s tax credit.
Before the price drop, the five-seat version of the Model Y was ineligible for that credit — something Tesla CEO Elon Musk called “confusing.” After the price drop, the long-term version of the Model Y qualifies for a $7,500 federal credit.
Along with price cuts announced last week in China and other Asian markets, the move marked a reversal in Tesla’s biggest markets from a strategy it had followed for much of 2022 when demand was strong and average sales prices for electric vehicles had risen. .
“This should really boost 2023 (Tesla) volumes,” said Gary Black, a Tesla investor who remains bullish on the company and its prospects following a recent sharp drop in its stock price, in a tweet. “It’s the right move.”
Prior to the price drop, Tesla’s stock had risen in the United States, tracked by models that show it is immediately available. Prices for used Tesla models had also fallen, increasing pressure to adjust sticker prices for new cars.
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The shift is Tesla’s first major move since it named its China and Asia chief Tom Zhu to oversee U. On the same subject : High school sports; See Greater Lansing Player of the Year winners.S. production and sales.
Tesla cut prices in China and other Asian markets last week. Combined with earlier price cuts announced in October and recent incentives, the price of a Model 3 or Model Y in China fell 13% to 24% from September, Reuters calculations showed.
Tesla has also cut prices in South Korea, Japan, Australia and Singapore.
Analysts had said China’s price cuts would boost demand and increase pressure on its rivals there, including BYD ( 002594.SZ ), to follow suit in what could turn into a price war in the largest single market for electric vehicles.
This pressure may also increase in Europe.
The Tesla Model 3 was the best-selling electric vehicle in Germany last month, followed by the Model Y, ahead of Volkswagen’s ( VOWG_p.DE ) all-electric ID.4. Volkswagen recently raised the price of its entry-level ID.3, putting it on par with the now discounted Model 3.
Tesla missed Wall Street estimates for fourth-quarter deliveries. Full-year shipment growth was 40%, which is also lower than Musk’s own forecast of 50% growth.
Last month, Musk said that “radical interest rate changes” had changed the outlook for the entire industry and that Tesla could lower prices to maintain volume growth, which would lead to lower profits.
Reporting by Victoria Waldersee in Berlin, Zhang Yan in Shanghai, Hyunjoo Jin in Seoul and Kevin Krolicki in Singapore; Edited by Christian Schmollinger, Neil Fullick, Lincoln Feast and Kenneth Maxwell
Our Standards: Thomson Reuters Trust Principles.
How much does a Tesla depreciate after 5 years?
| Years old | Depreciation | Residual value |
|---|---|---|
| 4 | $10,394 | 82.58% |
| 5 | $12,625 | 78.84% |
| 6 | $19,487 | 67.34% |
| 7 | $26,736 | 55.19% |
How much will the car depreciate in 5 years? After one year, your car will probably be worth about 20% less than what you bought it for. AFTER FIVE YEARS: After this sharp first-year drop, this new car depreciates 15-25% each year until it reaches the five-year mark. So this new car will lose about 60% of its value after five years.
How fast do Teslas depreciate in value?
Compared to conventional gas-powered vehicles, Teslas depreciate more slowly. One of the main reasons Teslas retain their value even years after initial purchase is their mileage. This may interest you : 2022 Vacation Travel Report. Most Teslas last over 500,000 miles, while the average person only drives 13,500 miles a year.
Will cars be cheaper in 2023?
But 2023 may finally bring relief. As demand stabilizes and inventories improve, prices are expected to decline. On the same subject : The Green Game Jam: Can Video Games Save the Planet?. Bank J.P. According to a November report by Morgan, prices could drop by up to 5% for new vehicles and 10% to 20% for used vehicles.
Is 2023 a good year to buy a car? Key points. If your car is nearing the end of its life, you might want to consider buying a new vehicle in 2023. Chip shortages, lower inventory and rising interest rates have caused drivers to spend more on new cars.
Will new car prices come down in 2023?
As new car production improves, demand for used cars will decrease and prices will continue to fall in the new year. The company predicts that used car prices will fall by 10-20% in 2023; on the other hand, a modest decline of only 2.5%-5% is predicted for new cars.
Are car prices expected to drop?
“New and used car prices are likely to decline for most of 2023,” Ian Shepherdson, chief economist at Pantheon Macro, said in a recent note, noting that car dealers’ profit margins rose faster than anywhere else during the pandemic and have “much more to fall.” supply chain concerns are reduced.
Can you negotiate Tesla price?
Tesla does not offer discounts or negotiations. The price you see is the price you pay. However, there may be some "spare" models with a few thousand miles on them (used at service centers and/or as loaners for customer test drives) that offer a small price drop – check with your local Tesla store.
Are Tesla offers to trade negotiable? Your trade-in vehicle will be picked up if you agree to a Tesla purchase. All paperwork required for the transfer will be signed by a Tesla representative at the time of transfer. Because the process should be hassle-free, Tesla trade-in offers are non-negotiable.
Can you get discount on Tesla Model 3?
Tesla is offering Model 3 and Model Y buyers in the U.S. a $3,750 credit when their vehicle is delivered in December 2022, according to an update to the company’s inventory page and several Reddit posts.
Are used Tesla prices negotiable?
No. All used Tesla vehicle prices are non-negotiable.
Can you negotiate at a Tesla dealer?
Tesla does not offer discounts or negotiations. The price you see is the price you pay. However, there may be some “reserve” models with a few thousand miles (used as “loaners” at service centers and/or customer test drives) that offer a small discount – check with your local Tesla store.
Will Tesla price go down in 2023?
Jonas and several other analysts see price cuts for Tesla in the coming year, peaking in late 2022 with outright cuts or other discounts. A decline in Tesla’s global average sales prices from $53,500 in the third quarter of 2023 to $53,500 in the third quarter of 2022 “doesn’t seem implausible,” Bernstein analyst Toni Sacconaghi wrote recently.
How much will Tesla cost in 2023? How much does a Tesla car cost? The 2023 Tesla lineup (Model S, Model 3, Model X, Model Y) ranges from $46,990 to $138,990 before taxes, incentives and specific options. Note that the $7,500 federal EV tax credit may affect these prices!
How long is a Tesla projected to last?
Tesla owners are said to lose just 5% after 100,000 miles. Tesla CEO Elon Musk claimed in a tweet that a Tesla battery could last 300,000 to 500,000 miles. If you drive at the national average of 273 miles per week, expect your battery to last between 21 and 35 years.
How much will a Tesla car cost in 5 years?
Owning a Tesla for five years costs an average of $57,369. This includes depreciation, insurance, maintenance, finance charges and fuel costs.
