Posted in Cars
The US electric car maker announced on Friday morning that it had cut the price of the Model 3 and Model Y with immediate effect, with the company citing the adjustment as a result of ‘normalisation of some of the cost of inflation’. Customers who received delivery of their expensive electric cars only weeks ago reacted angrily to the announcement, blasting the company and demanding compensation. The car maker confirmed on Friday 13th January that it has cut the price of the Model 3 and Model Y across Europe and the US. The Model Y SUV – the best-selling electric car in Britain last year and the third most-bought new car across all fuel types – now starts from £44,990 in the UK, having cost from £51,990 up until Thursday evening. The biggest reduction is on the range-topping Model Y Performance, which now costs £59,990, having previously been priced at just over £69,000, according to specialist website Electrifying.com. As for the Tesla Model 3 – last year’s second most popular new battery electric car – the entry price now starts at £42,990. The company says the price cuts are the result of stabilising inflation, though industry insiders says it is more likely the result of a drop in appetite for Teslas with the brand now ‘doubling down’ on a discount drive it started in Asia as demand slowed against the backdrop of a weakening economy. The Elon Musk-led company missed its target in 2022 to grow deliveries by 50 per cent annually and reported that sales of its China-made cars hit a five-month low in December, underlining the hit from rising interest rates and growing recession fears. In a statement issued on Friday morning, Tesla UK said: ‘Our focus on continuous product improvement through original engineering and manufacturing processes have further optimised our ability to make the best product for an industry-leading cost. ‘As we exit what has been a turbulent year of supply chain disruptions, we have observed a normalisation of some of the cost inflation, giving us the confidence to pass these through to our customers.’ The statement continued: ‘As local vehicle production continues to increase and we gain further economies of scale globally, we are making Model 3 and Model Y even more accessible across EMEA [Europe, the Middle East and Africa].’ Similar surprise price reductions announced in China at the beginning of last week ignited a mob-like response from customers, hundreds of whom stormed showrooms across the country to vent their frustration at paying 24 per cent more for the same cars just weeks earlier.