Tesla tries to claim massive price cuts are due to ‘partial normalization of cost inflation’
Tesla has commented on the new massive overnight price cuts on Model 3 and Model Y and claimed that they are due to “a partial normalization of cost inflation.”
We reported last night that Tesla implemented massive price cuts of up to $13,000 on Model 3 and Model Y vehicles in the US.
Similar price cuts are being reported in other markets, such as Canada and Europe.
While Tesla doesn’t have global or US press relations department to ask the company to comment on those price cuts, it still does in some markets, and a Tesla spokesperson in Germany commented on it.
The Tesla spokesperson tried to claim the price drop was due to “a partial normalization of cost inflation”:
At the end of a turbulent year with interruptions to the supply chain, we have achieved a partial normalisation of cost inflation, which gives us the confidence to pass this relief onto our customers,
This mirrors comments made by a Tesla China executive after a similar price drop in the market last week.
The price drop in some markets marks the first time Tesla has reduced prices after almost two years of gradually raising them to new all-time highs.
Electrek’s Take
I am happy to see Tesla vehicles being much more accessible, but I honestly don’t know who is buying this explanation.
Let’s be honest, Tesla is significantly slashing prices right now because it has to. It needs to increase demand to match its new production capacity.
Tesla gradually and incrementally increased prices for two years during the rise in inflation. And honestly, we already knew that inflation wasn’t the only reason. Yes, it was partly contributing to the price increases, but Tesla was also just increasing the prices because demand allowed it. That is made clear by its gross margins gradually increasing while raising those prices.
Now Tesla wants us to believe that it is basically erasing those two years of incremental price increases “due to inflation” because of a “partial normalization of cost inflation.”
I don’t think so. It has more to do with the fact that Tesla had its two biggest discrepancies between cars produced and cars delivered during the last two quarters, and now it finds itself with a lot of cars in inventory in some markets early in a new quarter.
However, an interesting aspect is that Tesla can actually afford to cut the prices by that much thanks to its industry-leading gross margin.
The price drops are significant enough that Tesla is now undercutting many other new EVs coming from the competition.
It is certainly making the EV market much more interesting, especially in the US with the new tax credit coming into effect.
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Hyundai is about to launch a new electric SUV in China. With its big debut coming up, Hyundai just dropped a sneak peek, and it looks like it could be the IONIQ 4. Check it out for yourself in the video below.
Is Hyundai teasing the IONIQ 4?
We caught our first glimpse of the new EV model last month after Beijing Hyundai released a few official “spy” photos.
Despite the camouflage, you can see a few design elements, like a light bar across the front, slim LED headlights, and a closed-off grille. At first, it almost looks like a smaller version of the IONIQ 9, Hyundai’s first three-row electric SUV, but with a much sportier, shaped profile.
Beijing Hyundai released a new teaser for the upcoming electric SUV this week. The video shows “a wave of high-end operations” as the vehicle dances across the snow.
The video highlights features like real-time torque control, high-speed cornering, and the SUV’s impressive body control while driving around cones.
Hyundai’s new electric SUV is being called “OE” internally, according to The Korean Car Blog, suggesting it could be an IONIQ model.
All other Hyundai IONIQ EV models were also codenamed with an “E” internally, which is raising speculation that this could be the IONIQ 4.
Like most global OEMs, Hyundai is fighting to compete in an intense Chinese EV market, which is dominated by domestic automakers like BYD.
Hyundai opened its first overseas R&D center last year in China to spearhead its comeback. It will work with local suppliers and tech companies to develop EVs designed for Chinese buyers. The new electric SUV is expected to launch in China later this year, followed by three new energy vehicles, including EVs and EREVs.
Beijing Hyundai will release more information on April 16, with the electric SUV set to “challenge the limit of driving performance.”
What do you think of Hyundai’s new electric SUV? Is this the IONIQ 4? Let us know your thoughts in the comments.
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Charge point provider char.gy has secured a £130 million contract to install 6,000 curbside EV chargers for Brighton and Hove City Council (BHCC) – the UK’s largest installation of its kind.
London-based char.gy has also been awarded a 15-year contract to operate and maintain the charging network.
Installing Level 2 chargers curbside, where most drivers in the UK park, will enable more people to take advantage of cheaper charging rates while juicing up their EVs overnight. (charg.gy’s pay as you go night tariff, between midnight and 7 am, is £0.39/kWh, compared to its £0.59/kWh day tariff.)
John Lewis, chief executive of char.gy, said the project is “a huge moment for the UK and its EV ambitions. This partnership alone will empower thousands of residents to confidently make the switch to electric vehicles, knowing they have easy access to chargers.”
Brighton and Hove City Council is among the first to tap into the government’s Local EV Infrastructure (LEVI) Fund, designed to help English local authorities roll out charging solutions for residents without off-street parking. Future of Roads Minister Lilian Greenwood said making EV charging as accessible as possible is “crucial to making the switch to electric a success.”
The UK now has over 75,000 public EV chargers, according to the Department for Transport—and it looks like the country’s on pace to hit its 2030 target. Back in December, the National Audit Office said the rollout is “on track” to meet the DfT’s estimate that at least 300,000 chargers will be needed by the end of the decade.
Read more: Meet the UK’s largest solar + storage EV charging ‘Superhub’
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