Tesla (TSLA) has cut prices for its Model Y cars in Germany。In 2023, Tesla lost its position as the best-selling electric car in Germany and was overtaken by Volkswagen.。A week after lowering the price of Model 3 and Model Y in China, Tesla announced a cut in the price of Model Y cars in the German market.。

Tesla reduced the price of Model Y Long Range and Model Y Performance by 5,000 euros to 49,990 euros (about $54,340) and 55,990 euros, respectively, equivalent to 9% and 8% of the previous price, respectively..1% discount。

According to the information on its website, Tesla also cut the price of the Model Y rear-drive model by 1,900 euros, or 4.2% to €42,990。

Although Tesla did not explain the reason for the price cut, according to the German Federal Motor Vehicle Administration (KBA), Tesla is struggling in Germany in 2023, with new registrations falling 9% to 63,685 vehicles, while sales of electric vehicles in Europe's largest economy increased by 11%..4%。

As a result of this situation, Tesla lost its position as the largest seller in the German electric vehicle market, and Volkswagen took 13.5% market share more than Tesla's 12.1%。

The latest price cut comes after Tesla announced last week that it would suspend most of its car production at its plant near Berlin from January 29 to February 11.。The company blames this on a shortage of parts due to changes in shipping routes caused by the attack on the Red Sea Fleet.。

In addition, this also occurs in the context of electric vehicle manufacturers competing for price cuts in China, the world's largest auto market。Last year, Mercedes-Benz CEO Ola Kellenius called it "Darwinism."。

Germany's electric vehicle subsidy program, which was planned to last until the end of 2024 but ended early last month, is thought to have an impact on German carmakers already struggling to cut prices to match Chinese and US rivals.。