In just one year, the price of Teslas has plummeted, with a drop of more than 20% for the Model 3 in particular. And the American manufacturer could continue to build on this momentum over the next few years.
A few years ago, Teslas were inaccessible to ordinary mortals, with a Model S blithely exceeding theat the 100,000 euro mark. If this is still the case for the sedan – even if its brand new Standard Range version should correct the situation once launched in France – the firm now offers much more affordable models. And that changes everything.
A falling price
Indeed, after the “S” and the large Model X SUV, the manufacturer launched its Model 3 in 2017, which notably enabled it to escape bankruptcy thanks to its more affordable price. Result, the success was there, since the sedan even became the best-selling electric car in Europenotably surpassing the Nissan Leaf.
Then, Tesla unveiled its Model Y in 2020, which radically changed the situation. The electric SUV is a hit today, so much so that it was the most registered car worldwide in the first quarter, all engines combined. Although he let himself be dethroned by the Dacia Spring in France in July, he is still well placed on the podium. And this in particular thanks to its unbeatable price-quality ratio.
Indeed, the star of the brand is currently displayed from 45,990 euros. A price defying all competition, which we owe in particular to the incredible price drop made at the start of the year on the SUV as well as the sedan, of the order of 13,000 euros. If Tesla had a little trouble selling last year, despite breaking a record with one million deliveries, things have changed a lot since then.
In 2023, the brand is the world number 1 in electric cars ahead of BYD and Volkswagen, with already no less than 889,015 cars sold since the start of the year. And this, we owe in particular to the sharp fall in its prices. According to the website It Homethe latter have overall down 19.9% worldwide in one year. A record, while market rates fell by 17.9%.
On average, it currently costs 54,660 dollars, or approximately 50,237 euros at the current exchange rate, compared to 68,215 dollars (62,695 euros) in July 2022 for a car in the range. A sharp fall, which we also owe to the establishment of the tax credit of 7,500 dollars on electric cars in the United States. And in France ? With two price drops, in January and April, the brand’s cars have become much more accessible.
The Tesla Model 3 was for the record displayed at 53,490 euros in June 2022, whileit now costs 41,990 euros, a drop of around 22% in one year. For its part, the Model Y cost no less than 64,990 euros last year in its Long Range version. Today, the electric SUV is billed at 52,990 euros in this version. Corresponding at a drop of about 18%.
But the firm does not intend to stop in such a good way, while it could still continue to lower its prices. In Hong Kong, the Model 3 and Model Y have seen a recent drop of up to around 6,000 euros. It remains to be seen whether the French market will also be affected in the coming months. This cannot be ruled out, since Tesla claimed at the start of the year to be ready to reduce its prices even more.
This could be to the detriment of the operating margin, which was posted at 11.4% in the first quarter, compared to 16% last year. However, the manufacturer plans to review its production method to reduce costs, while equipping its cars with new 4680 batteries that are less expensive to manufacture. This should help it offer even cheaper cars over the next few years.
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