Gone are the days when Tesla cars were extremely expensive. Admittedly, the Model S and Model X still command very high prices, but have dropped dramatically from their debut. But as for Model 3 and Model Y, it’s very different. Because the American manufacturer does everything possible to put them at the lowest price to attract as many customers as possible. Thus, the sedan is now cheaper than the Renault Mégane E-Tech, which, logically, should alarm the diamond brand. However, there is no question of the latter entering the Tesla game and lowering prices.

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— Renault France (@renault_fr) July 24, 2022

A fall is not expected

In any case, this is what Thierry Piton, the financial director of the French manufacturer, announced during the first quarter balance of the Renault group. The latter really confirmed that it was not lack of desire to reduce the price of an electric compact, currently on sale from €42,000. Indeed, it would be profitable enough for the brand that it doesn’t need to sell it to make ends meet. The firm also explains that it prefers to “sell less but better”, a strategy that is the exact opposite of Tesla’s. It really wants to flood the market, even if it means cutting into its margins.

Another strategy

Therefore, there is no problem for the diamond producer to reduce his profit, especially since the turnover by 29.9% compared to the 1st quarter of 2022. The Mégane is doing very well, with 11,000 units sold since the start of the year, 80% of them with the most powerful engines. But the company still goes against the trend, which tends to lower prices. This is what Ford does as well as MG and of course Tesla.