Tesla (TSLA) shares sink in pre-market as automaker continues price cuts in Europe

Shares of Tesla (NASDAQ: TSLA) are trending down by more than 1.6% in pre-market trading Wednesday morning after the company cut prices on its Model Y electric vehicle in Germany. The cuts come after the EV maker lost their spot as the top electric vehicle seller to Volkswagen in 2023.

Specifically, Tesla has cut the prices of its Model Y Long Range and Model Y Performance by 5,000 euros each, now priced at 49,990 euros ($54,340) and 55,990 euros, representing discounts of 9% and 8.1%, respectively.

The price adjustment follows a similar action taken by the carmaker a week earlier, where it lowered prices for its Model 3 and Model Y in China.

According to their official website, the electric automaker has also cut the price of its Model Y rear wheel drive unit by 1,900 euros, or 4.2%, bringing the new price to 42,990 euros.

In 2023, Volkswagen surpassed Tesla to become the largest seller of electric vehicles (EVs) in Germany, capturing a 13.5% market share compared to Tesla's 12.1%, according to data from the German federal motor authority KBA.

This latest price adjustment follows Tesla's recent announcement of a temporary suspension of most car production at its Berlin factory from Jan. 29 to Feb. 11. The company attributed the suspension to a shortage of components resulting from disruptions in transport routes, stemming from attacks on vessels in the Red Sea.

Shares of TSLA are down 1.67% in pre-market trading Wednesday morning.

By Michael Elkins | [email protected]

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