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Tesla follows in the wake of China and lowers the prices of its cars in Spain

Date: May 31, 2023 Time: 21:45:33

Tesla has decided to apply the same strategy in Spain that it has already promoted several times in China. The company has chosen to lower the price of two of its models, specifically in the Model 3 the price dropped to 44,990 euros, 15% less, and it has also reduced the Model Y by almost 10%, which now starts at 46,990 euros, as reported by the company itself through a statement.

Model 3 and Model Y become “more accessible” in the Europe, Middle East and Africa (EMEA) region.

In this context, Tesla has ensured that both the Model 3 Great Autonomy and the Model Y Great Autonomy can also access the Government’s incentive plan for the purchase of electric vehicles, the Moves, which supposes an aid of up to 7,000 euros.

important challenges

“Despite the significant challenges of the past year, such as semiconductor shortages, the energy crisis, logistics restrictions and other Covid-related disruptions, we continue to lay the foundation for our future growth by regionalizing supply chains,” the company has argued. “We also began the transition towards a more uniform distribution strategy to reduce logistics and delivery spikes,” he added.

Likewise, the US company has indicated that, as a “turbulent year” of interruptions in the supply chain recedes, it has observed a normalization in the inflation of some costs, which “gives them the confidence to be able to transfer it” to Your clients.

In fact, this same Friday the inflation data for last December was released in Spain, which rose two tenths in December in relation to the previous month, but cut its interannual rate by 1.1 points, up to 5.7%, its lowest figure since November 2021.

Likewise, the price reduction in Spain, Europe, the Middle East and Africa of the two Tesla models follows in the wake of the discounts that the brand has applied to several of its vehicles in China.

In 2022, the company led by Elon Musk increased its vehicle sales volume by 40% in relation to the previous year, up to 1.31 million units, and also increased its production by 47% in year-on-year terms with 1.37 million of assembled cars.

In fact, Tesla was the best-selling electric car brand in Spain in 2022 and the Model Y was the best-selling electric model in the fourth quarter of last year.

“In Europe, the Model 3 and Model Y have been regulars on vehicle sales podiums in many markets, not just for electric vehicles, but all powertrains. In Europe, the Model Y became the car best-selling among all models in November,” added the company.

Despite the company’s 2022 trading results, eToro China’s global markets analyst added to concerns over Musk’s oversight.

“Its price reduction on the stock market has been spectacular, from a PER (price-earnings ratio) of 130 times earnings to 21 times in just one year. This is still three times the valuation of industry leader Toyota, but is backed by for a triple profitability (1,200 Canadian dollars per car)”, the expert has valued.

“It is also supported by its higher growth rate as a leader in ‘premium’ electric vehicles with new capacity, from Indonesia to Mexico, and new products such as the Cybertruck. In addition to its many ancillary ‘other businesses’, from energy to services” , he added.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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