Tesla predicts sales decline but increases the price of the Model Y by 2,000 euros.

Elon Musk has explained that these changes are caused by seasonal demand for Tesla’s vehicles, but production must be maintained. This means they must lower the price when demand drops to encourage purchases and then recover the rates when reactivation of orders is detected.

Tesla Model Y

Finally, Tesla has confirmed that starting on March 22, the prices of the Model Y in Europe will increase by 2,000 euros. This move adds more tension to a trend for the North American manufacturer with much more dynamic rates than many customers would like.

With this update, the Model Y’s Long Range Dual Motor version will cost up to 51,990 euros ($56,525), while the standard Model Y will cost 44,990 euros ($48,914).

This movement might also react to the steep decline in North American manufacturers’ stock prices caused by a decline in profit margins due to the pricing war that Tesla initiated last year.

A conflict that caused the price of the Model Y to drop by more than 20% between 2022 and 2023 but severely lowered the profit margin for the US manufacturer. Something that they are currently attempting to resolve with this rise.

The most interesting development is that, contrary to its forecast of growth exceeding 40% in 2023, Tesla has predicted a sharp slowdown in sales in 2024, with growth of only 20%. A decrease in sales will not offset the rise in prices of its best-selling model.

It appears that Tesla has realized that sales this year will rise less than they have; instead, they see this as a pause before the next wave of growth. A stage during which they will concentrate on completing the design and starting the manufacturing of their next model—their most cost-effective suggestion, known as the Redwood Project—and establishing its production lines.

A compact priced at the lowest possible level—between 25 and 30 thousand euros in its most affordable version—should be unveiled at the start of 2025. If all goes according to plan, production will begin in the second half of 2026. anus.

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