# Tesla expands discounts with price cuts in Europe, Singapore, Israel
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-04-14
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Tesla Expands Discounts in Europe, Israel, Singapore
Meta Description: Explore how Tesla's price reductions in Europe, Israel and Singapore are affecting industry profit margins and global EV demand. Find out more here.
URL: https://financedigest.com/tesla-expands-discounts-with-price-cuts-in-europe-singapore-israelhtml

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# Tesla expands discounts with price cuts in Europe, Singapore, Israel

By Chen Lin and Victoria Waldersee

SINGAPORE/BERLIN (Reuters) -Tesla Inc on Friday slashed prices for its electric vehicles in Europe, Israel and Singapore, expanding a global discount drive it began in China in January while raising concerns about its industry-leading profit margin.

Tesla last week reported first-quarter deliveries up just 4% from the previous quarter despite offering discounts in the United States, China, Japan, Australia and South Korea aimed at spurring demand.

Days after releasing the disappointing delivery data, Tesla announced its fifth vehicle [price reduction this year](https://www.financedigest.com/germany-home-prices-to-sink-nearly-6-this-year-reuters-poll.html "Germany home prices to sink nearly 6% this year – Reuters Poll") in the U.S. market, as Washington prepares to introduce tougher standards that will limit EV [tax credits](https://www.financedigest.com/eu-us-working-on-deal-to-make-ev-minerals-eligible-for-tax-credits-eu-official.html "EU, US working on deal to make EV minerals eligible for tax credits -EU official").

In 2022, the world’s most valuable automaker also missed CEO [Elon Musk’s](https://www.financedigest.com/elon-musk-and-others-urge-ai-pause-citing-risks-to-society.html "Elon Musk and others urge AI pause, citing ‘risks to society’") delivery target of 50% growth, held to a 40% increase due to logistical issues and slowing demand.

[Tesla said on Friday it cut prices](https://www.financedigest.com/tesla-posts-record-quarterly-deliveries-after-price-cuts-up-4-from-q4.html "Tesla posts record quarterly deliveries after price cuts, up 4% from Q4") in numerous European markets including Germany and France because of a scaling up and improvement in its production capacity.

In Germany, Tesla has lowered the [price of its Model 3 and Model Y vehicles by between 4.5% and 9.8%, data on its website showed on Friday, marking its second price reduction this year after a price reduction of 1-17% in January](https://www.financedigest.com/uk-shop-price-inflation-hits-record-8-in-january-brc.html "UK shop price inflation hits record 8% in January: BRC").

In Singapore, it [cut prices of its Model 3 and Model Y vehicles](https://www.financedigest.com/musk-says-tesla-price-cuts-triggered-demand-2023-sales-could-hit-2-million-vehicles.html "Musk says Tesla price cuts triggered demand, 2023 sales could hit 2 million vehicles") between 4.3% and 5%, its local website showed.

Tesla also cut prices in Israel, with the price of the base rear-wheel drive Model 3 slashed by 25% after an initial [round of global price cuts](https://www.financedigest.com/meta-to-cut-10000-jobs-in-second-round-of-layoffs.html "Meta to cut 10,000 jobs in second round of layoffs") in January.

Musk has said Tesla would focus on bringing [prices down to drive demand and that it had seen success in sparking orders with January’s](https://www.financedigest.com/uk-shop-price-inflation-hits-record-8-in-january-brc-2.html "UK shop price inflation hits record 8% in January: BRC") discounts.

In the United States, Tesla has cut the [price of its base Model 3 by a cumulative 11% since the start of the year](https://www.financedigest.com/hong-kong-home-prices-drop-15-6-in-2022-snap-13-years-of-gain.html "Hong Kong home prices drop 15.6% in 2022, snap 13 years of gain"), with a 20% reduction on its base Model Y.

Tesla [reports its first-quarter results next](https://www.financedigest.com/whats-next-for-esg-reporting.html "What’s Next For ESG Reporting?") week.

($1 = 1.3244 Singapore dollars)

(Reporting by Chen Lin in Singapore and Victoria Waldersee in Berlin; Additional reporting by Christoph Steitz in Frankfurt; Writing by Miyoung Kim; editing by Jamie Freed and Jason Neely)


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