It’s a familiar story in the world of EV price promises and expectations. Elon Musk, Tesla’s charismatic CEO, has excited the media and financial analysts by announcing that the new Model 3 will be cheaper than the previous model. However, when the presentation of the new model took place on 1^Er September 2023, rather the reverse effect occurred, p price increases in several markets.

In Europe, for example, prices have increased by €1,000 for the Propulsion version. Prices have also risen in Asia, while frustration is growing in the United States as the new version is still unavailable for production reasons, a model currently made in China and therefore escaping protectionist US subsidies.

Tesla will soon lower prices in China

The anger is particularly visible in China, where the Model 3 Propulsion is priced at 259,900 yuan, or about 33,200 euros. That might sound like a good deal compared to the €42,990 it says in France, but the additional cost compared to the old version is about 12% in Chinawhich completely contradicts Elon Musk’s promises.

Faced with this growing anger, Tesla China suggested that when supplies of the older Model 3 Propulsion ran out, Prices for the new version could drop to around 200,000 yuan or around 25,500 euros. This reduction is planned for the fourth quarter of 2023. For example, the Long Autonomy version is already 5,000 euros cheaper than the previous one with a price of 295,900 yuan, or 37,800 euros, compared to 50,990 euros in France.

Old model stock selling strategy?

In general, when a drop occurs in the Tesla market, especially in China, it occurs globally, as well as in Europe. In the past, Tesla has shown its ability to adjust prices according to markets and demand, therefore, it is possible that prices in Europe will also undergo adjustments in the future.

Demand for this model should be strong, and Tesla likely wants to steer customers toward the “old” Model 3 to empty its inventory at more attractive prices compared to the new model. Once the stock of the old version runs out, the updated Model 3 should be priced accordingly.

Bear in mind, however, that the Model 3 prices in Europe are quite low, in the sense that last year the Model 3 cost almost €13,000 more (taking into account the lack of the environmental bonus, since it was excluded).

In France, even if Tesla Model 3 prices fall, with the introduction of the new 2024 bonus and taking into account the carbon footprint, the American sedan may lose its bonus next year. Thus, even if the facade price falls over the next few months, however, the loss of next year’s bonus should increase France’s final tally.

Read also:
• Tesla: Price cuts annoy customers
• Tesla: Lower prices will lead to delivery delays
• Tesla: the price of kWh in free fall!