Tesla has decided to lower the prices of its Model 3 and Model Y across the EMEA region, which includes Africa, Europe, and the Middle East. These two electric car models will also be significantly less expensive in Italy. This business strategy, which has always sparked a lot of discussions, is not something that Elon Musk’s company is new to.
However, let’s return to the two American electric cars’ brand-new Italian price lists. First, let’s look at the Tesla Model 3. Previously, the prices of the various electric sedan models were as follows:
- Tesla Model 3: 57,490 euros
- Tesla Model 3 Long Range: 64,490 euros
- Tesla Model 3 Performance: 67,490 euros
The following are the new prices as a result of the price reduction:
- Tesla Model 3: 44,990 euros
- Tesla Model 3 Long Range: 52,990 euros
- Tesla Model 3 Performance: 59,990 euros
As can be seen, these substantial price reductions enable this vehicle’s dual motor versions to become more affordable. Sadly, the Italian incentives cannot include even the basic variant.
Moving on to the Tesla Model Y, the previous pricing was as follows:
- Tesla Model Y: 49,990 euros
- Tesla Model Y Long Range: 65,990 euros
- Tesla Model Y Performance: 71,990 euros
The new price list, which follows the price modulation downward, is as follows:
- Tesla Model Y: 46,990 euros
- Tesla Model Y Long Range: 53,990 euros
- Tesla Model Y Performance: 63,990 euros
Prices of the Model 3 and Model Y
It is unclear why the American company was able to bring down the prices of the Model 3 and Model Y in this manner. “Continuous improvement of the products through original design and production processes” is mentioned in the manufacturer’s note. The “capability to produce the best product at an industry-leading cost” can now be improved thanks to this work.
Coming off what was a turbulent year due to supply chain disruptions, we have seen a normalization of some cost inflation; this now allows us, with confidence, to pass on this reduction in costs to our customers as well. As we scale up local vehicle manufacturing and capture further economies of scale globally, we’re making Model 3 and Model Y even more accessible across EMEA.
In addition, those who had just placed an order for one of these two models will undoubtedly not find the sudden and substantial price reduction appealing.
The American automaker’s rivals won’t be pleased either with this move. Models like the Model 3 and Model Y are already popular. This price cut will only make existing customers more accessible to new ones.