Published on October 17, 2020 |
by Zachary Shahan
October 17th, 2020 ni Zachary Shahan |
There has been a tornado of Tesla car changes recently – a range increase for the Model X, many changes to the Model 3, a ridiculous price reduction for the Model S, the upcoming 7-seat Model Y, and many more. Another one that seems worth highlighting is the Model 3 which only got some well-known price cuts in Norway.
The reasons for the price reduction are not entirely clear (lower production costs? Lower shipping costs? Weakening demand? Currency / exchange rate changes?), But I will return below. It is also not clear if there are price changes in other European markets as well. (Let us know if you notice some!) However, when it comes to consumers, nothing else matters. It is important that the price drops – by several thousand dollars (tens of thousands of Norwegian kroner.
The Performance Price of the Tesla Model 3 not yet It changed 499,900 kroner ($ 53,293). The price of the other two trims has changed as follows:
- Model 3 Standard Range Plus: $ 430,900 → $ 399,900 ($ 45,937 → $ 42,632)
- Model 3 Long Range: $ 484,900 → $ 449,900 ($ 51,694 → $ 47,962)
The Tesla Model 3 is the leading seller of electric vehicles in many markets and worldwide, and Norway is the leading market worldwide for the EV market share, but the Model 3 is not # 1 in Norway. After the first 3 quarters of 2020, the Tesla Model 3 was # 5 in Norway – behind Audi e-tron, Volkswagen e-Golf, Hyundai Kona EV, and Nissan LEAF.
It is important to note that Tesla typically sells all the cars it produced quarterly after the quarter. Thus, the lack of sales in one market does not necessarily mean the lack of consumer demand – Tesla can prioritize other markets. However, this is definitely an unusual placement for the Model 3 and many wonder if a mature EV market (like Norway) means less Tesla dominance.
It is also noteworthy that Norwegians have been buying EVs for so long, favoring Tesla for many years, that most people who want a Tesla can have one (or two).
We do not know what is happening at Tesla in Norway, so I do not make any assumptions without further information.
Regarding price reduction, though, Your side It is reported that the reason for them is simple exchange rate. (Tesla has been making price changes in foreign markets over the years due to constantly changing exchange rates – this is a normal thing to do.) Tesla’s communications director, Although Sandvold Roland, did not confirm that explanation, as he noted that they did not directly comment on price changes. But he said he did not think it was a good time for a price reduction there because they were having a lot of logistics / delivery difficulties during the coronavirus pandemic. But, from a consumer perspective, a reduction in price is always a good thing.
As a final note on price changes in Norway, E24.wala explained that even with these well-known price reductions, the Model 3 is more expensive than 6 months ago in Norway. What again? Tesla raised the prices of all its models in April in Norway. The Model 3 Standard Range Plus rose in price from NOK 46,000 ($ 4,904), from NOK 384,900 ($ 41,033) to NOK 430,900 ($ 45,937) at that time. That means that, despite this week’s price drop to 399,900 kroner, the Model 3 Standard Range Plus is NOK 15,000 ($ 1,599) more expensive than in March. Again, all of this seems to go down in currency exchange rates, perhaps with any changes in US pricing that also work as appropriate.
While this may not mean much in the very best way of things, I am certainly nacucious to see if this or that leads to a boost in end-of-2020 registrations for the Model 3, and if enough to raise it up to th -2, 3rd, or 4th place in the country at the end of the year. It was close to the cars in those positions to climb that ladder. However, # 1 is clearly in the bag, with Audi e-tron engulfing sales in Norway this year. There is almost twice the market share of the Tesla Model 3, according to EV Volume.
Because of Norway’s interest in larger vehicles with ample cargo space for all types of camping and skiing equipment, apart from the Model 3, I was very excited to see how the Model Y performs in Norway. We should see that at some point in 2021.
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