European carmakers experience stock decline as Tesla reduces prices in Germany
Shares in European carmakers took a hit on Wednesday following Tesla’s decision to lower prices in Germany, signaling intensified competition among electric-car manufacturers in the region.
At 10:58 GMT, the shares of Volkswagen dropped by 2.5%, Stellantis by 1.6%, Renault by 3.3%, Mercedes-Benz by 1.8%, and BMW by 2.6%.
Tesla slashes prices in Germany
According to Tesla’s website, the U.S. electric-car company reduced prices by 5,000 euros ($5,439.25) for two versions of its Model Y. German consumers can now purchase the Performance model for EUR55,990 and the Long Range model for EUR49,990. Additionally, the base Model Y price was lowered by EUR1,900 to EUR42,990.
Electric-vehicle pricing faces challenges in Europe
HSBC analysts noted in a recent report that intensified competition and weakening demand are likely to exert pressure on electric-vehicle pricing in Europe this year.
Ripple effects: Tesla’s price cut impacts Asian carmaker stocks
Tesla’s price reduction strategy extended beyond Europe. The company recently slashed prices in China, causing a negative ripple effect on Asian carmaker stocks this week.