KEY TAKEAWAYS
- Tesla shares fell after cutting prices of its Model Y cars in Germany, France, Norway, and the Netherlands.
- The move comes just a week after Tesla cut prices of its Model 3 and Model Y cars in China.
- Tesla suspended most of the production at its Berlin-Brandenburg plant as ships re-routing to avoid Houthi attacks in the Red Sea led to a shortage of parts.
Tesla (TSLA) shares fell over 3% in early trading Wednesday after slashing prices of its Model Y cars across several European countries, just a week after reducing prices in China.
The electric vehicle (EV) maker reportedly lowered prices of its Model Y variants in Germany, France, Norway, and the Netherlands.
The Model Y rear-wheel drive variant in Germany is now available at 42,990 euros ($46,714), a decrease of roughly 4.2%, while the Model Y Long Range’s price was reduced by 8.1% to 49,990 euros ($54,321).
Tesla reduced prices by up to 6.7% in France, as much as 7.7% in the Netherlands, and up to 7.1% in Norway for its Model Y variants.
The price cuts in Europe follow a suspension by the electric-vehicle maker of most of its production in its Berlin factory from Jan. 29 to Feb. 11, as attacks on ships by Houthis in the Red Sea lead to a shortage of parts.
Tesla slashed prices several times last year, in China as well as in the U.S., to cope with slowing demand and rising competition. Warren Buffet-backed BYD, a Chinese firm, pulled ahead of Tesla as the world’s largest EV maker by global sales in the last quarter of 2023.
Shares of Tesla were 3.2% lower at $212.94 per share as of about 10:20 a.m. ET Wednesday following the news. They’ve gained about 62% over the past year.