Pricing lowered on Model 3 and Model Y in the US by $1,000 to $2,000.
In Japan, the price cut is as high as 24%.
Despite Tesla owning the US market when it comes to EV sales, as we reported yesterday, the EV company has decided to drop the price of its most popular models. In Japan, a market that Tesla has had difficulty penetrating, price cuts are considerably larger.
The idea in Japan is to stimulate sales. Over the last few years, Tesla has essentially failed at breaking into the market with fewer than 2,000 sales in 2020, up slightly over the 2019 numbers. The land of the rising sun has been on Tesla’s radar for more than six years and this is the first time that pricing has dropped. The cuts to the Model 3 are as big as 24% from the previous price and are made possible by the fact that Japan’s cars will now come from Tesla’s Shanghai factory instead of from the U.S.
As far as the US is concerned, Model 3 prices have dropped to $36,990 from $37,990 for the base Standard Range Plus version. The same trim for the Model Y has received a $2,000 price cut, from $41,990 to $39,990. The Performance versions of both models, contrary to the others, have seen their prices increase by $1,000 each.
According to Automotive News, the price cut in Japan was also done in advance of the arrival of stiffer competition from other automakers. This same thinking applies to the US as 2021 promises to be rich in new electric vehicle introductions.