Published on October 17, 2020 |
by Zachary Shahan
October 17, 2020 by Zachary Shahan
There has been a whirlwind of Tesla vehicle changes recently –
The reasons for the price reductions are not entirely clear (lower production costs? Lower shipping costs? Weakened demand? Currency / exchange rate changes?), But I will come back to that at the bottom. It is also not clear whether there have been price changes in other European markets as well. (Tell us if you noticed anything!) But when it comes to consumers, nothing else really matters. It just means that the price has dropped – by several thousand dollars (tens of thousands of Norwegian kroner).
The price of the Tesla Model 3 Performance does not have changed. That’s $ 499,900 ($ 53,293). The price of the other two trims 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 best-selling electric vehicle in many markets and globally, and Norway is by far the largest market in the world for EV market share, but the Model 3 is not No. 1 in Norway. After the first 3 quarters of 2020, the Tesla Model 3 is No. 5 in Norway – behind the Audi e-tron, Volkswagen e-Golf, Hyundai Kona EV and Nissan LEAF.
Worth noting is that Tesla basically sells all the cars it produced quarter after quarter. So a lack of sales in one market does not necessarily mean a lack of consumer demand – it may be that Tesla prioritizes other markets. However, this is certainly an unusual location for the Model 3, and it has many wondering if a mature EV market (like Norway’s) means much less Tesla dominance.
It is also worth noting that Norwegians have been buying electric cars so much for so long and favoring Tesla for years that the vast majority of people who want a Tesla may already have one (or two).
We simply do not know what is going on with Tesla in Norway, so I do not assume any assumptions without more info.
In terms of price cuts Your side reports that the reason for them is simply the exchange rate change. (Tesla has been making price changes in foreign markets for years due to ever-changing exchange rates – this is a normal thing to do.) Tesla’s communications director, Even Sandvold Roland, could not confirm this explanation because he noted that they never comment directly on the price. changes. But he said he did not think it was a good time for a price reduction there because they have had a lot of difficulties with logistics / deliveries during the coronavirus pandemic. But from a consumer’s point of view, a price reduction is always a good thing.
As a final note on price changes in Norway, E24.nr explains that even with these notable price reductions, the Model 3 is more expensive than it was 6 months ago in Norway. Wait what? Tesla raised the prices of all its models in April in Norway. The Model 3 Standard Range Plus rose in price by NOK 46,000 ($ 4,904) from NOK 384,900 ($ 41,033) to NOK 430,900 ($ 45,937) at that time. This means that even with this week’s price drop to DKK 399,900, the Model 3 Standard Range Plus is NOK 15,000 ($ 1,599) more expensive than it was in March. Again, all of this seems to be falling on exchange rates, presumably with any US price changes also working as they should.
While that may not mean much in the big scheme, I’m certainly curious to see if this or anything else leads to a boost in registrations at the end of 2020 for the Model 3, and whether it’s enough to raise it 2nd or 4th place in the country before the end of the year. It is close enough to the cars in these positions to climb the ladder. However, # 1 is clearly in the bag, with the Audi e-tron swallowing sales in Norway this year. It has about twice the market share as the Tesla Model 3 according to EV Volumes.
Given Norway’s interest in larger vehicles with ample luggage space for all kinds of camping and skiing, except for the Model 3, I am very eager to see how the Model Y performs in Norway. We should see it at some point in 2021.
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