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Tesla cuts prices in Europe due to increased competition

Tesla has been trading blows with other EV manufacturers in Europe. With the increased competition, the company has been facing a lot of heat recently. And to keep making continuous deliveries, Tesla cuts prices in Europe. This is also because the company is in the limelight recently for not so good reasons. The recent callback of their vehicles in China and the media control flaw in US units are some of those. At the same time, companies like GM are launching affordable EVs in the market to grab consumers’ attention.

Tesla is being outperformed

Reports suggest that General Motors is actually outperforming Tesla. And the year 2021 could be one of the biggest for them. Global Autos Adam Jonas said, “What @mtbarra and $GM are doing–may end up being one of the most profound strategic turnarounds not just in the auto industry but in business.” The huge number of issues arising with Tesla vehicles is also a reason they are losing market share. Recently a Tesla car exploded in a Shanghai parking garage, which is being inspected right now. Plus, there was a forced recall in China because of the safety-related concerns in some Tesla models.

Tesla cuts prices in Europe

To compensate for all the negativity surrounding the brand, the company has been resorting to price cuts. In Europe, the company has reduced the prices of all three variants of the Model 3 vehicles. The Model 3 standard range plus the price was reduced from €42.990 to €39.990. At the same time, the long-range and performance model prices were reduced from €52.490 and €58.490 to €49.990 and €54.990 respectively. The vehicle’s price cuts might also help the company stand strong against the growing competition from Audi, Mercedes, and other companies.

What’s next for Tesla?

All these speculations on why Tesla has been reducing the prices of their EVs in Europe. But one good explanation for this could be the decreasing value of the dollar as compared to Euro. And even though the company has reduced the prices, it is not actually affecting their margins and at the same time helping them compete better. So, it is a win-win situation for the company. One thing that Tesla should focus on in order to sustain itself in the EV market is to focus on quality control. Its vehicles are getting recalled time and again, and only if it could fix that, great things might happen for them in the future.

The fact that Tesla cuts prices in Europe make it very clear that they are facing the competition of the market. What do you think about the same? Do let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.

Also Read: Mercedes-Benz showcases its electric vehicles, the EQA 2021



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