Tesla has decreased prices for its Model Y cars across several countries in Europe a week after announcing similar price cuts for its Model 3 and Model Y units in China to become more competitive against the Warren Buffett-backed local competitor BYD.
In particular, the company reduced its prices in its dealerships in Germany, France, Norway, and the Netherlands. The price cuts also mean that Tesla's shares dipped by 1.6% in the US premarket trading, according to CNBC.
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Houthi Attacks Contribute to Change in Tesla's Sales
Tesla's German operations have been affected by disruptions in the Red Sea after attacks made by Iran-backed Houthis on cargo ships passing through the area, affecting global trade and drawing international criticism.
As a result of the turmoil in the Middle East, Tesla said that it would suspend most car production at its Berlin-Brandenburg plant last week, citing a lack of components due to changes in transport routes.
Just like in China, the competition in the electric vehicle market in Germany has been heating up over the past year, with Volkswagen inching ahead of Tesla as the top EV carmaker in the country, outselling the US automaker with a market share of 13.5%, compared to Tesla's 12.1%, according to figures from German federal motor authority KBA.
