France can benefit from this

While Tesla significantly lowered its prices a few days ago, it is now the turn of its Asian rival VinFast to reconsider its pricing policy. A strategy adopted by two other Chinese brands, including Xpeng, which has lowered prices.

Despite a sales record with more than one million vehicles delivered in 2022, Tesla had a rough end to the year. Indeed, despite several price cuts and the return of the sponsorship program, the brand has had great difficulty selling its cars in China and the United States. Including the lack of love, which can be explained by several reasons Decline in the Middle Kingdom and taking this step due to the willingness of American customers to wait until 2023favorable change in taxation around electric cars.

A sharp fall

But while Tesla could be living through 2023 as the worst year of its existence, the brand has decided to tackle the problem head-on, even though it will be challenged by the Chinese manufacturers that come into force at that time. Thus, he carried out a major operation to lower prices all over the world. The aim is to encourage customers, especially in Europe, to take this step. Because the amount of the environmental bonus in France was revised downwards on January 1, which forced many buyers to order before the end of last year.

Finally, prices in our market dropped by more than 10,000 euros literally overnight. A drop that has the whole world worried, making the Model 3 and Model Y more affordable than ever. A worrying situation for the competitors of the quick-reacting American brand. This is especially true of Xpeng, which has significantly reduced its prices in China.

The P5 and P7, as well as the G3 SUV, then dropped from 20,000 yuan to 36,000 yuan, or The equivalent of 2700-4900 euros according to the current exchange rate. It’s a long way from the drop in Tesla, but it’s still very impressive. An annoying but important modification for customers who have already ordered at full price. Exactly and as described Electrekexperts fear wave of cancellations Among Chinese brands, in favor of Elon Musk’s company models.

But the Chinese company that is slowly coming to Europe is not the only one that wants to reconcile with its rival. Indeed, VinFast also plans to set up promotional operations for its customers. The spokesperson of the Vietnamese brand really explains to the American agency. Reuters. The latter claims that ” We are considering many promotional programs that we will be announcing soon“.

higher prices

However, the manufacturer has not yet confirmed whether it is these transactions also include price reductions. However, this is likely because VinFast cars cost more than those currently sold by Tesla. By comparison, the VF8 is listed in the US at $59,000 (approx. €54,413) versus $52,990 (approx. €48,870) for the Model Y.

France, The price of Tesla’s compact SUV starts at 46,990 euros against €62,200 for the VinFast VF8 in its Propulsion version. Even so, we’re not immune to a new rally in Tesla, while we know the brand tends to yo-yo with its pricing. In particular, he named Piedmont Lithium Inc., which was responsible for supplying the lithium needed to design the batteries. for reviewing the terms of his contract with his company.

If the rates were previously locked, they will now be re-evaluated according to the market. However, this tends to increase the price of this material has increased by 1200% in the last two years. An increase that will logically be reflected in Tesla’s price in the future. But the brand will not be the only one, because all manufacturers should be affected, and experts fear a shortage of batteries in the future. There is a strong demand for materials and their scarcity.

The solution? As recommended by Renault, reduce the size of the batteries at the expense of autonomy. However, this is the only possibility that should be considered while waiting for the development of a robust battery that will allow the prices of electric cars to continue to fall in the future.

With the price changes and new prices for Tesla in 2023, one thing is clear: the market will be flooded with Model 3 and Model Y. Let’s get back to why and how…
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