Tesla slashes prices in Europe after China cuts

The news: Tesla has slashed prices of its Model Y cars across Europe, a week after the company cut prices in China in the face of uncertain electric vehicle demand.

The numbers: Tesla slashed prices in Germany for its Model Y Long Range and Model Y Performance by 9% to €49,990 ($83,050) and 8.1% to €55,990 respectively. In France, it reduced prices by as much as 6.7%, while prices were cut by up to 10.8% in Denmark. The news sent Tesla's shares down more than 3% in US trading.

The context: While it did not provide a reason for the move, EV demand has generally been slowing as state subsidies end and high borrowing costs prompt buyers to rethink big purchases. Tesla struggled in Germany in 2023, posting a 9% decline in new registrations against an 11.4% increase in overall EV sales in Europe's top economy. The latest price cuts come after the automaker announced last week that it would suspend most of its car production at its factory near Berlin from 29 January to 11 February, blaming a lack of components.