With a Tesla Model 3 ironed under 40,000 euros bonus removed, the American brand offers nearly unparalleled value for money as compared to its electric market competitors.
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| Tesla Model 3 |
Tesla significantly reduced the price of its two most popular models, the Model 3 and Model Y, between Thursday and Friday night. In France, but also in other European and American markets, frequently with a new price to profit from public help.
13,500 euros reduction for the Tesla Model 3
For the Model 3 , the discount is impressive. From 53,500 euros, the basic version is now offered at a final price of 39,990 euros, a decrease of 13,500 euros. With this twofold effect: the price reduction to 44,990 euros allows the sedan to once again benefit from the environmental incentive, which does not apply to new models sold for more above 47,000 euros. As a result, the state subsidy only permits it to go below 40,000 euros, reaching its 2021 floor price with the SR+ at 36,800 euros.
The same system is used on the Model Y SUV, which has a price range of 49,990 euros (the previous bonus maximum dropped in 2022 was 50,000 euros) to 46,990 euros. Without selecting an option, the purchaser will be able to take advantage of the 2023 bonus and receive a final price of 41,990 euros.
Competitors of Tesla
It is impossible to compare Tesla to other manufacturers since the American firm provides a unique experience on several levels. Frequently pitted against luxury brands such as BMW, Mercedes, and Audi, Tesla's pricing on its most cheap models also pits it against select generalist brands.
This is especially true given the price decrease: if we compare the Model 3 to the current Renault Mégane E-Tech (exclusively offered in 100% electric), the French can still appear competitive with a starting price of 39,000 euros, and therefore a bonus of 34,000 euros subtracted. However, the Mégane remains smaller at 4.20 meters, over 50 centimeters shorter than the Model 3, and performs significantly worse (130 horsepower, 40 kWh battery with a range of around 300 km and power "fast" recharging limited to 85 kW).
To achieve a range closer to that of the Tesla sedan (491 km), you should rather look at a version of the second level of finish (techno), which offers around 450 km of range and a charging power of up to 130kW. Problem: we already exceed the price of the Model 3, while we would still have to add a few options to get closer to the American in terms of equipment.
The same remark can be made about Peugeot and its 2008 SUV, which is available in a 100% electric form but is still shorter than the Model 3/Model Y combination with a length of 4.30 meters. And, while the base version costs 39,940 euros (34,940 euros bonus subtracted), the high-end GT finish and additional equipment cost 44,420 euros (39,420 euros bonus deducted). Although the price is slightly cheaper, we are still far from Tesla standards in terms of performance and autonomy.
The ID.4 with a 77 kWh battery and hence better autonomy than the Model Y (526 km vs 455 km) begins at 51,900 euros at Volkswagen. As a result, it is already more expensive and does not qualify for the ecological bonus in France.
Tesla between low-cost and premium?
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| Tesla Model Y |
If we solely consider the pricing requirement, a model is unavoidably required at the start of 2023: the MG4. The Chinese sedan (MG is part of the SAIC group) is substantially shorter than a Model 3, yet it has a starting price of 28,990 euros (23,990 euros bonus deducted). Taking the most recent level of finish and the choices available to come closer to a Tesla, particularly with a range increase from 350 to 435 km, the price remains extremely cheap, at 35,990 euros (30,990 euros bonus subtracted), but still far from the services available at Tesla.
What is the difference between premium and competitors? A BMW i4 already provides a high level of performance: the German sedan starts at 53,550 euros and has 286 horsepower and 478 kilometers of range. We'll compare it to a Model 3 Performance, which starts at 59,990 euros. A price that plummeted by 10,000 euros between Thursday and Friday. Enough to make the most powerful Model 3 more appealing than more efficient variants of the i4, which begins at 61,500 euros.
It remains to be seen how the competition, including generalist and luxury brands, will react.
"Tesla comes to put pressure on everyone. When you have a competitor who cuts prices by looking for volume, it puts competitors in an uncomfortable position, when they were hoping for a 'pricing' [a price environment ] favorable on electric vehicles", reacted a financial analyst to our colleagues from BFM Bourse .