Tesla Car Prices in 2023 will go down, Here’s the reason

Key Takeaways:

• Tesla has reduced the price of some of its most popular electric vehicles in Europe and the US by thousands of pounds in an effort to boost customer demand.
• The price reductions are still up for debate, according to Ginny Buckley of the electric vehicle marketplace Electrifying.com.

To increase customer demand, Tesla has slashed the cost of some of its most well-liked electric vehicles by thousands of pounds in Europe and the US.

The company is up against increased competition from other automakers and has a challenging outlook for the global economy.

In the UK, price reductions range from 10% to 13%, while on some US models, they can reach 20%.

On a base Model 3 and the least expensive Model Y, new UK buyers will save £5,500 and £7,000, respectively.

Nevertheless, more than 16,000 customers purchased those top-selling models the previous year, and some complained that they had overpaid.

On a Facebook page for Tesla owners, one user wrote: “Just yesterday, I picked up the vehicle. What ought I to do? Return the car to Tesla by going there? I can’t believe I lost $5,000 just a few hours after picking up the car “.

Customers in China, where Tesla announced price reductions last week, responded similarly.

Disgruntled owners staged protests over the weekend outside Tesla distribution centres in Shanghai and other cities, demanding compensation.

Tesla’s prices in China have dropped twice in the past six months and are currently 13% to 24% below September levels.

Tesla announced that it would charge customers who had ordered but had not yet received their vehicle the new lower price to avoid similar objections in the US and Europe.

According to Ginny Buckley of the electric vehicle marketplace Electrifying.com, the price reductions are still debatable. They are certain to “send shockwaves” through the industry due to Tesla’s transition from a premium to a more mainstream product.

The Association of Fleet Professionals’ Paul Hollick, chair, welcomed the price reductions, saying they would make electric vehicles more accessible to his members. He claimed that the “disorderly marketing” was not good news.

“This kind of action inevitably causes resentment. The business would be wise to implement some sort of redress, “said he.

The manufacturer of electric vehicles has been expanding quickly recently as it transitions from being a niche premium brand to a mass market producer.

But there are some difficulties.

Growing competition from more established automakers and Chinese brands, slower global growth, higher interest rates, and other factors pose threats to its expansion.

Elon Musk once referred to Tesla car prices at “embarrassing levels” when demand far outweighed supply.

But if it wants to keep expanding, it can no longer afford to do so in a world where more electric car brands will be vying for a smaller pool of potential customers.

According to James Baggot, editor-in-chief of Car Dealer Magazine, the decision would significantly affect used Tesla prices, which he claimed had already decreased by more than a fifth of the previous year.

The current UK starting price for a new Tesla Model 3 is £42,990. Model Y cars cost as little as £44,990.