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Did Lackluster European Sales Leads to Tesla Model S Price Drop?

Where to Buy Tesla Model S Cheaper, in Germany
Where to Buy Tesla Model S Cheaper, in Germany

The Tesla Model S is a beautiful (and expensive!) electric vehicle, which makes it hard for many people to get into an electric vehicle that’s so capable.

That being said, the Tesla Model S has been at the top of some sales charts, such as in Norway, where it was the best-selling vehicle, of any kind, for a couple of months. However, it hasn’t gotten the massive appeal that it has here in the US, where production is still behind orders, in spite of Tesla Stores being banned in some states, such as New Jersey and Texas.

Across the Atlantic, Germany has been a big focus of Tesla Motors. Sales haven’t reflected much interest, not even 100 cars in the first two months. In order to boost German, and the rest of European, interest in the Tesla Model S, Tesla Motors introduced the Autobahn Package and announced expansion of the Tesla Supercharger network across the region.

That’s a good start, but sales still aren’t where Tesla Motors wants them to be, so the next step is to drop prices, which they have. Previously, Tesla Model S was starting at just over €72,300 ($100,000) in Germany, but is now starting €7,000 ($9,700) lower. Similarly, Tesla Model S prices in Holland are down by €4,000 ($5,500) to €66,200 ($91,900). Tesla Motors hasn’t given any reason for the price drop, but it seems fairly certain that the company is still within its profit margins to do so.

Interestingly, Tesla Model S pricing isn’t the first to drop in Germany. Previously, Opel Ampera’s price was cut by €8,000 ($11,000) in Germany, so I think it could simply be an issue with electric vehicles, there. I wonder, however, will the price go back up if sales pick up?

Photo credit: Holger Eilhard / Foter / CC BY-NC-SA

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