Tesla Slashes Prices Across Globe Amid Rising Inventory

Tesla cuts prices by $2000 in the US and €2000 in Europe

Tesla has lowered its prices in Europe due to a surge in inventory at its Gigafactory in Grünheide (Berlin, Germany), built with the booming European electric vehicle market in mind.

According to Reuters and The Guardian UK on the 21st (local time), Tesla has reduced the prices of specific models in major European countries, including Germany and parts of the Middle East and Africa.

In Germany, the price of the Model 3 rear-wheel drive has been adjusted to €40,990 ($48,500), a decrease of €2000 ($2,375). Following price reductions in the US and China, Tesla has now effectively lowered prices in all significant global sales regions, including Europe and the Middle East.

Earlier, Tesla had lowered the sale price of its flagship Model 3 by $2000 in the US market and reduced the prices of all models sold in China.

According to Bloomberg and other foreign media, the reasons behind the price reduction include an increase in inventory due to weak Q1 sales in the US and intensifying competition in China.

The consecutive price cuts are due to an increase in inventory caused by weak sales.

Earlier, Bloomberg reported that Tesla’s price reduction in the US market was due to an increase in inventory resulting from weak Q1 sales. Earlier this month, Tesla announced that its global sales for Q1 of this year fell 8.5% from the same period last year, recording 386,810 units.

On the 14th, the company announced it would lay off more than 10% of its employees globally, including two senior executives, to cut costs.

Tesla’s stock price has fallen for six consecutive trading days from the 12th to the 19th, reaching a 15-month low ($147.05). So far this year, the stock has fallen by 40.81%.