Published on 17 October 2020 |
by Zachary Shahan
October 17, 2020 of Zachary Shahan
There has been a flurry of changes to Tesla vehicles lately: a range increase for the Model X, numerous changes to the Model 3, a fun price cut for the Model S, the 7-seater Model Y that̵
The reasons for the price reduction are not entirely clear (lower production costs? Lower shipping costs? Weakening demand? Currency exchange / exchange rate?), But I’ll come back to this at the bottom. Furthermore, it is not clear whether there have been price changes in other European markets as well. (Let us know if you’ve noticed any!) However, when it comes to consumers, nothing else really matters. It only matters that the price has dropped by several thousand dollars (tens of thousands of Norwegian kroner.
The price of the Tesla Model 3 Performance He has not changed. It is 499,900 kronor ($ 53,293). The price of the other two finishes has changed as follows:
- Model 3 Standard Range Plus: 430,900 crowns → 399,900 crowns ($ 45,737 → $ 42,632)
- Long Range Model 3: 484,900 crowns → 449,900 crowns ($ 51,694 → $ 47,962)
The Tesla Model 3 is the best-selling electric vehicle in many markets and globally, and Norway is by far the largest market in the world by market share for electric vehicles, but the Model 3 is not number 1 in Norway. After the first 3 quarters of 2020, the Tesla Model 3 is # 5 in Norway, behind Audi e-tron, Volkswagen e-Golf, Hyundai Kona EV and Nissan LEAF.
It is worth noting that Tesla essentially sells all the cars it has produced quarter after quarter. So, a lack of sales in one market doesn’t necessarily mean a lack of consumer demand – it could be that Tesla is prioritizing other markets. However, this is definitely an unusual positioning for the Model 3, and many are wondering if a mature EV market (like Norway’s) means far less dominance than Tesla.
It’s also worth noting that Norwegians have been buying electric vehicles for so long, favoring Tesla for years, that the vast majority of people who want a Tesla may already have one (or two).
We just don’t know what’s going on with Tesla in Norway, so I’m not guessing without more information.
As for the price reductions, however, Din side reports that the reason for them is simply the change in the exchange rate. (Tesla has been making price changes in overseas markets for years due to ever-changing exchange rates – this is normal.) Tesla’s communications director, also Sandvold Roland, could not confirm this explanation, because he noticed that they never directly comment on the price changes. But he said he didn’t think it was a great time for a price cut there because they had a lot of difficulties with logistics / deliveries during the coronavirus pandemic. However, from the consumer’s point of view, a reduction in prices is always a good thing.
As a final note on price changes in Norway, E24.no explains that even with these dramatic price cuts, the Model 3 is more expensive compared to 6 months ago in Norway. Wait what? Tesla raised the prices of all its models in April in Norway. The price of the Model 3 Standard Range Plus increased by NOK 46,000 ($ 4,904), from NOK 384,900 ($ 41,033) to NOK 430,900 ($ 45.937) at that time. This means that even with this week’s price drop to 399,900 crowns, the Model 3 Standard Range Plus costs NOK 15,000 ($ 1,599) more than in March. Again, this all appears to hinge on exchange rates, presumably with any price change in the US making its way appropriately.
While it might not mean much in the grand scheme of things, I’m definitely curious to see if this or something else leads to an increase in registrations at the end of 2020 for the Model 3, and if that’s enough to boost it up to 2nd. , 3rd or 4th place in the country by the end of the year. It’s close enough to the cars in those locations to climb that ladder. However, number 1 is clearly in the bag, with the Audi e-tron swallowing sales in Norway this year. It has about double the market share of the Tesla Model 3, according to EV Volumes.
Given Norway’s interest in larger vehicles with ample cargo space for all types of camping and ski gear aside from the Model 3, I can’t wait to see how Model Y fares in Norway. We should see this at some point in 2021.
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