ALBAWABA- A week after it cut down prices for Model Y, Tesla is taking the same step around their European market due to unsettled demand for electric vehicles.
This news comes at a time when Tesla stock is seeing some bad days, with CEO Elon Musk earlier asking for an extra 12 percent of the company and having a down start of 2024. The price slash invoked added hesitation by investors, driving the stock 3 percent down.
Tesla recently announced, alongside Volvo, that they are making production cuts; this is due to the current uncertainty around the Middle East, with Yemen’s Houthis blocking shipments across the Red Sea as a response to Israel’s war on Gaza, causing a shortage of parts required for EV production, in a time where demand seems to be going higher and higher.
Model Y Long Range price was cut down by 5,000 euros making it 49,990 euros total, while the Performance variant saw a decrease in the same amount, totaling at 55,990. Similar price drops also reached France at 6.7 percent, the Netherlands at up to 7.7 percent, Norway at 7.1 percent and Denmark at a whopping 10.8 percent.
Rivals in Germany also showed a downtrend in their stock prices, with Mercedes Benz Group, Volkswagen, and Bayerische Motoren Werke dropping between around 2.3 and 3.3 percent. In the United States, General Motors and Ford Motors suffered a downturn between 1.1 and 2 percent.
China, on the other hand, recorded a bull EV market in 2023, with a 12 percent increase in sales beating the 3 percent growth target. This is largely due to increased worldwide demand, fierce competition, and renewed interest in commercial vehicles.
