Tesla lowers the price of its Model Y to respond to new European competition

Tesla has cut the price in France of its Model Y, a larger version of the Model 3 sedan. The propulsion version with a small battery now starts at €42,990, the long autonomy version starts at €49,990 and the performance model goes up to €. 55,990 has been kept. That’s a €3,000 reduction on the first two variants and also a €4,000 reduction on the most powerful model in the range. Enough to respond to new competition, especially European this time, because Renault and Peugeot have introduced two electric SUVs at quite aggressive prices.

With these new prices, the Model Y Propulsion sells for the same price as the Model 3 and the Grande Autonomy is a thousand euros cheaper. Tesla has never been in range logic, so this is no surprise and has happened in the past. Still it’s interesting to look at and a reminder that this car, classified in the SUV category, is the manufacturer’s best-selling vehicle worldwide. It is also one of the best-selling cars and even if it is not official yet, because some figures are missing, the Model Y should be the best-selling car in Europe for the year 2023.

However, a situation that may change in 2024. While Tesla had no competitors in its price range until then, European manufacturers decided to attack. In quick succession, Renault with its Scenic E-Tech and Peugeot with its new E-3008 have decided to make an impression with particularly aggressive pricing. This is especially true for the first which is priced from €39,990, which is much lower than Tesla where everything is standard, of course, but with a technical sheet that is not inappropriate. For its part, the Stallantis brand officially starts at €44,990, with a larger battery and better theoretical autonomy than the American.

We don’t yet know what the two French cars are worth, although we know the Model Y propulsion by heart, so comparisons remain theoretical at this point. In any case, there is little doubt that Tesla reacted to these lower prices than expected, even though its car is significantly larger and almost in another segment. In any case, all prices given here exclude the bonus due to a government quirk: while the month of January is well underway, we still don’t know the exact terms of the 2024 bonus.

The government wanted to reserve it for cars with a sufficiently low environmental score, calculated according to complex rules to exclude production outside Europe, and specifically in China. All three cars shown here remain eligible, with Tesla benefiting priority Its German factory to produce the Model Y propulsion there for the French market. The exact amount is not officially known, although we should stay at €5,000 initially. That would give us the car at €37,990, not far from the Model 3’s best historical prices.

Tesla is expected to update its Model Y in the coming months to a similar model to the Model 3, whose design was revised both inside and out in the fall. We expect similar changes, such as reworked lights as well as better sound insulation on the exterior and a new, more refined interior with no lever behind the steering wheel and ventilated seats, to name a few examples.

Tesla introduces its new Model 3

If it’s not a game-changer, maybe it’ll slow down some sales while we wait for an update… or maybe encourage those who like some physical checks to order now. Not to mention that we don’t know if the Berlin factory will initially produce this model, which could deprive the Model Y of the French ecological bonus.