Tesla enthusiasts and customers in Europe noted that the company launched discounts on the Model 3 and Model Y in its inventory (or rather that will shortly arrive from China).
According to various reports, the rebates spread across the continent and might be as high as 6-7 percent, compared to prices for new orders.
There are no reports about the Tesla Model S and Model X cars because those are newly launched in Europe (the refreshed versions) and there is probably a queue of customers waiting for cars.
Troy Teslike reports that those who decide to buy cars from Tesla’s inventory (brand new cars with less than 50 miles on the odometer), can save several thousand EUR, GBP or whatever the currency is in a particular market.
That’s very interesting because Europe already saw a price reduction similar to the ones in the United States, Canada, China, and other markets around the world.
The answer behind the new discounts in Europe for Model 3/Model Y seems to be an insufficient number of orders (demand side) compared to the vehicle supply (partially from China and partially from the Giga Berlin plant in Germany).
We actually noted this issue in a separate report, related to the estimated order backlog. According to Troy Teslike‘s data, the queue was about 30,246 (35 days of waiting) as of January 15, while as of February 15, it was estimated at over 17,500 (22 days of waiting). In other words, the supply exceeds demand.
If such things happen, manufacturers risk that the inventory of new cars will start growing. Some might then decide to lower prices (discounts) to sell more cars. The higher number of cars from China, combined with record production in Germany, might bring a second wave of price reductions (for new orders).
There is no such issue in the United States because demand appears to be higher than production. Without a doubt, the situation in Europe is very interesting. If Tesla would lower prices by an additional several percent, it could be shocking, especially for other manufacturers, but for Tesla, it’s another step to make EVs more popular and increase volume.
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