Benzinga - by Anan Ashraf, Benzinga Editor.
Tesla Inc‘s (NASDAQ:TSLA) best-selling battery-electric Model Y SUV is now more affordable in Germany than Toyota Motor Corp‘s (NYSE:TM) Prius plug-in hybrid vehicle (PHEV), thanks to price cuts.
What Happened: The rear-wheel drive variant of the Model Y SUV is now listed at 44,990 euros ($48,588) on Tesla’s Germany website. The Long Range is priced at 52,490 euros and the Performance version at 58,490 euros.
This is lower than the Prius PHEV which starts from 45,990 euros for the base variant in the European country.
Dropping EV Prices: Tesla made its Model Y in Germany competitive through multiple price changes. The company commenced cutting prices in the country at the onset of 2023. Before that, the SUV had a starting price of about 54,000 euros.
Like in Germany, Tesla started slashing vehicle prices in all its key markets at the start of 2023 in an attempt to boost sales. At the end of 2023, the Model Y took the throne as the best-selling vehicle around the globe with over 1.2 million units delivered, replacing a Toyota car.
Tesla CEO’s Theory On Pricing And Demand: During Tesla’s fourth-quarter earnings call last month, company CEO Elon Musk noted that the Model Y achieved the best-seller crown despite its higher price as compared to other top-selling vehicle models like the Toyota RAV4 and Corolla.
“So, people are really stretching their wallets to be able to afford a Tesla. It’s quite a difficult thing for them to do,” Musk then said.
During Tesla’s third-quarter earnings call in October, Musk even said that customers are unlikely to buy an RAV4 if a Tesla vehicle costs the same.
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