Electric automaker Tesla has significantly reduced pricing on its popular Model Y crossover SUV in Germany and France, according to observations by Twitter user @troyteslike.
The price cuts, which took effect on January 17th, 2024, lower the price of the Model Y by as much as €5,000 in Germany and €4,000 in France. This makes the long-range variant of the Model Y less expensive than the long-range Model 3 sedan in both markets for the first time.
In Germany, the rear-wheel drive Standard Range Model Y now starts at €42,990, down €1,900 or 4.2% from its previous MSRP. The all-wheel drive Long Range and high-performance Model Y Performance versions saw more drastic reductions of €5,000 (9.1%) and €5,000 (8.2%) respectively.
Similar discounts were introduced in France, with the Standard Range Model Y dropping €3,000 to €42,990, the Long Range decreasing €3,000 to €49,990, and the Performance trimmed by €4,000 to €55,990.
I suspect supply considerations are at play. Reports of Tesla aiming to launch an updated Model Y, codenamed Project Juniper, have circulated in recent months. I speculate that Tesla may be offering discounts to help clear out existing Model Y inventory before the new version arrives. This would allow for a smoother transition and prevent a glut of vehicles from piling up.