Tesla Announces Price Increases for Model Y in Europe and the US


Tesla has announced price increases for its vehicles, particularly the Model Y, in several European countries and the United States (US). The largest increases are seen in several European countries, reaching around 2,000 euros or approximately Rp 34 million. The new prices will take effect from March 22, 2024.

Meanwhile, the price of new Tesla cars in the US will increase by $1,000 or approximately Rp 15.6 million. The price adjustment will begin on April 1, 2024, as reported by Reuters on Monday (18/3/2024).

Elon Musk, the CEO of Tesla, has also commented on the company's new policy. His remarks were included in Tesla's official X account posting about the new prices of its products.

"This is an important issue in manufacturing: factories need continuous production for efficiency, but consumer demand is seasonal," Musk said.

This move marks the first price increase by Tesla after offering significant discounts on its products since last year. For example, in March 2023, in the US, the price of the Model Y was reduced by $3,000 and the Model 3 by $2,000.

In China, both the Model 3 and Model Y received maximum incentives of up to 34,600 Yuan. Discounts include 8,000 yuan for car insurance and 10,000 yuan for paint replacement. Tesla plans to offer limited-time preferential financing for the Model Y, amounting to 16,600 yuan.

Similar pricing policies have been implemented in several other countries, including Europe, Israel, Singapore, Japan, Australia, and South Korea.

However, this price war has had a significant impact on Tesla. The company's sales margins have reportedly decreased.

In addition, Tesla plans to produce the next generation of electric vehicles called Redwood. Tesla stated that this production could potentially result in very low sales growth.

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