Tesla’s Huge Promotions in the USA Raise Eyebrows

Tesla wants to end the year with a new sales record, but the current massive discounts raise many questions.

It is always difficult to extrapolate American prices from what we know in Europe. Purchasing power, tax laws, federal subsidies, currency exchange rates, import costs, etc., all distort the calculations. Nevertheless, one parameter is clear: the discounts.

And what has been happening since the end of October 2024 is intriguing observers… and annoying customers who, three days earlier, paid full price for their cars. Because at Tesla, prices are not negotiated individually. Like a loss leader fuel operation at a supermarket, Tesla adjusts its prices, end of story.

Up to -6000 dollars!

Let’s remember that in the United States, Tesla Model 3 and Model Y no longer exist in simple “RWD” versions. There are remaining stock units of the Model 3 with the small battery, but they are not appealing since they do not qualify American citizens for the federal bonus of $7500 (6950 euros). Consequently, the starting price for the Model Y Long Range RWD begins at $33,890, bonus included. That equals, with the conversion rate, 31,390 euros! But let’s calm the annoyed comments right away: in the USA, prices do not include sales tax, which varies by state. It averages 8% across the Atlantic, but can range from 0 to 11.45%. Thus, in the worst case currently, the Tesla Model Y is sold for about 34,990 euros! This is therefore 8000 euros cheaper than in France, notably due to a promotion of $3600 (3350 euros).

The same observation applies to the Model 3, which starts in the Long Range RWD version at $31,590 (-$3480), or 29,300 euros. In France, it is priced at 44,990 euros, which is more than a 15,000 euros difference or +50%!

25% less expensive than in Europe!

The Tesla Model S? Starting at $72,460 (-$6000), or 67,200 euros, while the price in France begins at 92,990 euros, resulting in a difference of 25,790 euros. Even applying the maximum sales tax would bring the price down to 74,900 euros, leaving still an 18,000 euros delta.

Finally, there is the Tesla Model X, which drops to $72,490, close to the price of the Model S. In France, this model starts at 99,990 euros, again showing more than a 25% price difference.

Should we think these prices will soon cross the Atlantic? It seems likely, even if the ecological bonus is not as strong here and the sales tax is quite pleasant. But let’s not delve into the debate on social protections, etc.

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