Overview

• Tesla has made frequent price changes recently including reducing prices for its electric vehicles in Europe and some other countries.
• The price of a Model 3 and Y in Germany were reduced by about 5% and 10%, respectively according to Reuters.
• Tesla has reduced prices of its EVs in Europe and Israel by up to 9.8% as part of Tesla’s mission to accelerate the transition to renewable energy though lower prices could cut into its automotive margins.
• CEO Elon Musk’s latest price cuts for Tesla in key European markets by thousands of dollars per car suggests the automaker grew too fast and exceeded its abilities.
• Consistently cutting prices can reduce the resale value of used cars and anger existing customers testing Tesla's cost-cutting culture before the company reports first-quarter earnings.