Panicked Automakers Slash EV Prices In Race to Bottom of the Market - Now It’s Global

GM was first. It reduced the price of the Bolt line in 2022. Then Tesla, after what seemed like a dozen price increases, started to drop prices again and again for its American market customers. After vowing never to discount new Teslas, the company now routinely does so with discounts approaching $6K when we checked earlier this month. Hyundai, Ford, and others are also dropping American market prices of battery-electric vehicles (BEVs). Now, the trend has gone global.

Related Story: Automakers Desperate to Move Unwanted EVs Amp Up Discounts - Yes, Even Tesla

Canadian Market EV Price Cuts

It may surprise some to learn that Canada is not included in American-market auto data. Oddly, Canada even has provincial car markets, since the EV subsidies vary from one Province to another.  In an effort to capture more subsidies, Tesla has dropped its 2024 Model Y prices. Elektrek has a full report on this, eh? 

European Market EV Price Wars

In Germany, EV makers like BYD, Tesla, and VW are fighting over market share. Elektrek has reported that BYD has slashed prices by as much as 15% in order to keep and gain share. BYD is neck and neck with Tesla as the global leader in BEVs and wants to solidify its position outside of China. The news today is that Tesla is also cutting prices in Europe. Prices are dropping by as much as 8%, according to reports. 

Chinese Market EV Price Wars

This market share fight in Europe has not gone unnoticed by Tesla, which has just cut the prices of its Model Y and Model 3 in China. Teslarati reports that the Chinese market price cuts approach 6%. The publication concludes, “This means that with a lower price, some consumers may consider the Model 3 and Model Y a steal.” Well, we are certainly not disagreeing with Teslerati, but leave it to them to find a bright spot in news of a company slashing prices in an inflationary market. 

Korean Market EV Price Wars

Price cuts on EVs are also happening in Korea. Hyundai and Kia are solidly entrenched in this market, which is why it was so remarkable that the pair cut prices for EVs this past fall.

EVangelists are hurriedly creating social media posts with “Nothing to see here, move along” sentiment, falling back on delivery data they say indicates that EVs are still on firm ground. Perhaps they are right. But if so, why all the price cuts and special offers on EVs? 

Image of Tesla Model 3 courtesy of Tesla, Inc.

John Goreham is an experienced New England Motor Press Association member and expert vehicle tester. John completed an engineering program with a focus on electric vehicles, followed by two decades of work in high-tech, biopharma, and the automotive supply chain before becoming a news contributor. In addition to his eleven years of work at Torque News, John has published thousands of articles and reviews at American news outlets. He is known for offering unfiltered opinions on vehicle topics. You can follow John on Twitter, and connect with him at Linkedin.