Tesla slashes prices in several countries in move which could impact used EV market

  • Tesla announces fresh round of price cuts amid a slump in global sales
  • Prices drop in US, Europe, China, the Middle East and Africa
  • UK prices appear to remain at the same level for the time being
  • Similar move last year sparked collapse in the value of used EVs

Time 8:23 am, April 23, 2024

Tesla has slashed its prices in a number of major markets, in a move which could have a major knock-on effect on the value of used EVs.

The Elon Musk-led outfit has reduced the price of its Model Y, Model X, Model S and Model 3 cars in various markets, following a slump in global sales.

Prices have currently not dropped in the UK but should the outfit follow suit here, it could lead to a repeat of what we saw last year – when used EV values plummeted as a result of Tesla slashing its asking prices.

The crash led to several dealers refusing to stock EVs for fear of losing money, with specialist electric vehicle dealers left on the brink.

Tesla’s official website shows that the updated Model 3 was reduced by the equivalent of £1,560 (14,000 yuan) in China on Sunday night, meaning it now starts at around £25,920 (231,900 yuan).

Meanwhile, in the Germany the rear wheel drive version of the Model 3 was cut from €42,990 (£37,000) to €40,990 (£35,350).

Automotive News Europe reports that Tesla has also made price cuts in other markets throughout Europe, the Middle East and Africa.

Elsewhere, in it’s home territory of the USA, the company cut $2,000 (£1,620) from the prices of the Model Y, Model X and Model S.

The cuts follow a difficult period for the brand, which saw global deliveries dip 8.5% to 386,810 in Q1.

Last week Car Dealer reported that the outfit was planning to lay off more than 10% of workers just days before shareholders were asked to allow Musk’s record £45bn pay.

In an email to staff, the billionaire boss said: ‘We have done a thorough review of the organisation and made the difficult decision to reduce our headcount by more than 10% globally.’

He later added: ‘I would like to thank everyone who is departing Tesla for their hard work over the years.

‘I’m deeply grateful for your many contributions to our mission and we wish you well in your future opportunities. It is very difficult to say goodbye.

‘For those remaining, I would like to thank you in advance for the difficult job that remains ahead.

‘We are developing some of the most revolutionary technologies in auto, energy and artificial intelligence.

‘As we prepare the company for the next phase of growth, your resolve will make a huge difference in getting us there.’

Main image: Alamy/PA

Jack Williams's avatar

Jack joined the Car Dealer team in 2021 as a staff writer. He previously worked as a national newspaper journalist for BNPS Press Agency. He has provided news and motoring stories for a number of national publications including The Sun, The Times and The Daily Mirror.

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