In the German market, Tesla reduced the prices of the Model Y Long Range and Model Y Performance by 5,000 euros each. The adjusted selling prices are 49,990 euros and 55,990 euros, with price cuts of 9% and 8.1% respectively. The Model Y Rear - Wheel Drive model also achieved a 4.2% price cut. In the French market, the price cut of Model Y reached 6.7%. In Denmark, the Netherlands, and Norway, the price cuts were as high as 10.8%, 7.7%, and 5.6% - 7.1% respectively.

Behind this price - cutting strategy is the overall slowdown in global electric vehicle demand. This is mainly affected by factors such as the reduction of national subsidies and the increase in borrowing costs, making potential buyers more cautious when considering purchasing electric vehicles. According to data from the German Federal Motor Transport Authority (KBA), the number of new electric vehicles on the road in Germany in 2023 increased by 11.4% compared with 2022, but the growth rate has slowed down.

Teslas performance in the German market has also declined. In 2023, the companys new car registrations in Germany decreased by 9% to 63,685 units, and its market share dropped to 12.1%. This change caused Tesla to lose its position as the largest electric vehicle seller in Germany, being replaced by Volkswagen, which currently holds a 13.5% market share.

Globally, the competition in the electric vehicle market is becoming increasingly fierce. Tesla not only faces challenges in Europe but also has to deal with competition from other automakers. In 2023, Chinese automaker BYD surpassed Tesla to become the worlds largest electric vehicle manufacturer.

Teslas price - cutting strategy in the European market shows the companys flexibility in responding to changes in the global electric vehicle market. By cutting prices, Tesla not only hopes to attract more consumers but also tries to maintain its leading position in the increasingly competitive market. However, this also indicates that the electric vehicle industry is entering a more complex and challenging stage, and the future market trend remains to be seen.

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