Tesla drastically cuts the prices of the Model 3 and Model Y

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Until before the Covid-19 pandemic, car prices usually remained stable over the life cycle of an individual model, which normally lasts six to eight years. During this period, they rose by a few hundred euros at most. But the chip crisis before and the war in Ukraine after created exceptional conditions and prices started to rise, even by several thousand euros in the case of battery-powered vehicles. So the news that Tesla has radically cut the price of both Model 3 and Model Y has caused quite a stir. Depending on the version, in fact, the reduction reaches 12,500 euros. But before seeing the new Californian car list, let’s take a step back.

In 2022, Tesla globally sold 1.31 million cars and produced 1.37 million. This is a growth of 41% and 47% respectively compared to 2021, a very good result considering the conditions of the global markets. Furthermore, in Europe the Model 3 and Model Y have become a permanent presence on the sales podium (absolute and not related only to electrics) in many markets. In the meantime, the American company has brought production up to speed in the Berlin Gigafactory and has started the transition towards a more uniform distribution strategy to reduce logistics and delivery peaks. Furthermore, the improvement of production processes has made it possible to lower costs, thanks also to a normalization of part of cost inflation.

In other words, “With the increase in local vehicle production and the acquisition of further economies of scale globally, we are making Model 3 and Model Y even more accessible throughout the EMEA area” reads a note released by Tesla. Thus, on the Italian market the Model 3 now starts at 44,990 euros and the Model Y at 46,990 euros, with much more uniform price lists. However, it is worth noting that the price of the Model 3 has already fluctuated a lot in the past, as it cost just under 50,000 euros in autumn 2019. A figure that remained similar until January 2021, when it was lowered to 42,500 euros to be included in the eco-incentives. It is not the first time, therefore, that the price of the Model 3 behaves like a roller coaster.

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