Electric cars: With its price drop, Tesla is giving ideas to another car giant

News JVTech Electric cars: With its price drop, Tesla is giving ideas to another car giant

Car price drops are piling up…

Tesla to start the fashion. And after Tesla, Ford followed the same path. And today it’s Volkswagen, which in turn cracks. After hesitating to lower the prices of its electric cars, the German company finally decided to lower the price of its ID.3a vehicle that she has just renewed and which is also her best-selling model in Germany. “We have a clear pricing strategy that emphasizes reliability. » Those are the words of Oliver BlumeVolkswagen Group CEO, about a month ago about Tesla’s price cut.

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But now things seem to have changed. Finally, since Tesla’s initial attack and the Model 3 and Y price drop, Ford has also lowered the prices of its Mustang Mach-E. A “reversal of the situation”, which is therefore forcing Volkswagen today to rethink its plans and place its ID.3 under the 40,000 euro mark.. At the moment there is no information circulating regarding a possible price change in France, but everything suggests that the specifics of the German market have encouraged the compact to drop a few dollars.

Volkswagen is slashing the price of its ID.3 to bring it in line with Tesla’s Model 3

With the latest discounts, With its Model 3, Tesla had almost managed to come close to the ID.3 in terms of price, but now the compact with a starting price of 39,995 dollars has an additional cushion of 5,000 dollars compared to the sedan. To give you an idea, in France in 2022, Tesla sold 17,005 Model 3 and Volkswagen sold 4,256 ID.3. Although the price plays a role in these results, this difference can also be explained by the fact that the technical possibilities of the American sedan were significantly more attractive than those of the German electric compact. Simply put, for the same price, Tesla offered a larger car with a longer range.

But things are changing, and with Volkswagen’s recent update to its ID.3, it’s more likely to be on par with Tesla’s Model 3. Equipment is now more extensive and the quality of the cabin materials has been improved to bring new commercial impetus to a car that has been on the market since July 2020. The most important question, however, is whether this price reduction will reach France. In Germany, buyers can benefit from placing the car under 40,000 dollars‘Recently reduced help. In France, the eco-bonus is currently reducing the price of the ID.3 to 41,750 dollars (or 39,750 dollars for private individuals with a tax income of up to 14,089 dollars). With a starting price similar to what Volkswagen is offering in Germany, the ID.3 would become a serious option for the French who want to afford an electric car.

Regardless of whether these discounts arrive in our country or not, the movement of the Germans shows how much power Tesla has to put pressure on its competitors. As we said a few days ago, Tesla is in one very advantageous location when it gets into a price war. The margin that Elon Musk’s company earns on each car sold is significantly higher than that of its competitorsand that’s why Volkswagen had pursued a clear strategy: sell less but more expensive. A strategy that is obviously not used with the ID.3.