Tesla drops Model S prices in Europe due to strengthening euro [UPDATE]

Tesla Motors has been thinking about European
Model S sales
for years, but things haven’t always gone as planned. While sales have been brisk in Norway, the car is less popular in places like Germany, where
sales have been slow – less than 100 units sold in the first two months – according to
Inside EVs, which prompted the introduction of a
special Autobahn package. To reverse the trend,
Tesla is putting on its finest plaid polyester suit and is slashing prices like they’re going out of style. Yes, we know Tesla doesn’t have traditional
dealerships and the whole suit thing is an old stereotype, but sometimes you just gotta run with it.

Tesla PR in America hasn’t responded to our request for confirmation (
see update below), but online sources show the drops are fairly substantial. In Germany, for example, Tesla has dropped almost 7,000 euros ($9,700 US at today’s exchange rate) off the price, down to 65,300 euros ($90,600), while in Holland, the new price is down 4,000 ($5,500) euros to 66,200 ($91,900). No reason was given for these drops, but we can’t help but suspect that demand isn’t too strong at the moment. To help increase sales, Tesla recently
announced an expansion of its
Supercharger network on the continent.

The price of the
Model S has not dropped in the US, where the base model starts at $69,900 before incentives.

Tesla’s director of global communications, Elizabeth Jarvis-Shean, said that our speculation that demand is low is «simply incorrect.» She added: «Changes were made two months ago to all the base prices of Model S across our markets in the Euro-zone due to the strengthening of the Euro. We continuously evaluate currency fluctuations to be able to offer our customers the best price for Model S. Prolonged currency exchange rate fluctuations are the reason for the adjustment of the base pricing of the car.»

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