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.

*UPDATE: 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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  • 53 Comments
      Joeviocoe
      • 9 Months Ago
      Not really any good explanations given in these comments. People seem to want to think that demand is low in Europe. But really, the price was just way too high to begin with. Tesla is still VERY MUCH supply constrained. Especially when they first launched in Europe. They priced to sell very few there, since incentives were more favorable in the U.S. markets. Now, supply is a bit better, they can afford to sell more abroad, and thus can correct the high European price accordingly.
      FREEPAT75014
      • 9 Months Ago
      Very simple reason is the lack of Range Extender that is mandatory for the Europeans in that "high end" / "main car" price segment. I drive a beloved BMW 530DA in Paris area in France. I do an average # 70KM # 50M per day of local commutes, then one week end out of 3 I have an extended week end trip of # 400KM # 300M (return), then once per Qtr I have a vacations trip of usually 2000KM, and once per year in August a very long vacations trip of up to 10000KM into wild European places where there won't be any fast or slow chargers before 20 years from now at best. Having only one carpark slot at home, I can only have one car - No room for luxury second car here -. So w/o a Range Extender my sole car replacement could not be a TESLA today, full stop... although I would dream to get a Plug In Hybrid when I'll replace my car with a # €60K budget later this year, and love Model X as well as model S too. Just I love their radicalism regarding their "ALL Electric drive train" and their World Class battery pack and all their wonderfull design, but no range extender here is a "no go" vs our idea of "FREEDOM". Please TESLA add a Range extender of some sort ASAP if you want to beat the Germans here in their High End cars segment where your prices position you !
        Joeviocoe
        • 9 Months Ago
        @FREEPAT75014
        I don't think most wealthy Europeans drive like you (a.k.a Jason Statham's Transporter, although I think his was a 7 series BMW) With so much mass transit available.. even high end luxury cabins on trains... long distance is not at all difficult. The distances that most people travel between European cities, is easily covered by relatively few Superchargers.
        Joeviocoe
        • 9 Months Ago
        @FREEPAT75014
        I don't think most wealthy Europeans drive like you (a.k.a Jason Statham's Transporter, although I think his was a 7 series BMW) With so much mass transit available.. even high end luxury cabins on trains... long distance is not at all difficult. The distances that most people travel between European cities, is easily covered by relatively few Superchargers.
        • 8 Months Ago
        @FREEPAT75014
        Your any notion is 100% wrong. In Europe we have a massive advantage that is 3 Phase AC any hotel can set up a 3 Phase 32amp @ 380 volts line for a TESLA. I have friends who drive both Roadsters and Model S all over Europe on a regular basis and one friend who has driven a TESLA around the world in 3 months. The world is full of electricity and a TESLA can plug into anywhere plus your idea that there is no chargers is wrong. Chargelocator.com
      • 9 Months Ago
      When I took my test drive it was january 27. At that moment the price was already on the level that it is today. The explanation I got had to due with currencies, euro vs dollar. Because of some tax issues in 2013 more then a thousand model S were delivered to the customer in december so it is to be expected that many considering buyers placed the orde in 2013 which explaines a dropfall in the beginning of 2014. Waiting for my Model S. Delivery scheduled for june.
        • 9 Months Ago
        I forgot to mention, I live in the Netherland.
        Electron
        • 9 Months Ago
        Wait till June...If Tesla really had trouble moving the metal in Europe one would expect shorter delivery times. At the same time it's clear Model S isn't meeting sales expectations in Germany. Curious... Maybe Tesla is using the slack in Europe to fill the pipelines to Asia.
      joe cool
      • 26 Days Ago
      My 1973 pos Pontiac would destroy you battery powered fagmobiles in a head on collision. Keep that in mind next time you drive your electric vaginas on wheels through Detroit.
      James
      • 9 Months Ago
      Germans who can afford a luxury vehicle prefer to buy German brands. It is a status symbol over there. Anyone who has driven on the Autobahn knows this.
      raktmn
      • 9 Months Ago
      Here is what Tesla has been reported to be emailing to Swiss buyers (translated version): "Customized pricing structure for the Model S in Switzerland Because of the appreciation of the Swiss franc against the dollar over the past few months lowers the price of the Tesla Model S in Swiss francs, to adapt it to the current exchange rate. We follow our policy of fair prices in all international markets , according to which may only transport costs, tariffs and taxes lead to price differentials. We also solve the Swiss service package with an extended warranty and thereby make this optional. We also continue to pre-paid , four – and eight-year service packages at reasonable prices. For our customers, it is important to know that there is not still a need to buy a service package or to comply with regular maintenance appointments with our service so that the entitlement to Tesla’s warranty remains intact . The base price for the Tesla Model S is now 71,900 CHF . Please contact us to make our sales team to arrange a test drive or an order. Sincerely, Tesla Motors" (Translated from this original text): Angepasste Preisstruktur für das Model S in der Schweiz Wegen der Aufwertung des Schweizer Franken gegenüber dem Dollar im Verlauf der zurückliegenden Monate senkt Tesla den Preis des Model S in Schweizer Franken, um ihn dem aktuellen Wechselkurs anzupassen. Damit folgen wir unserer Geschäftspolitik fairer Preise in allen internationalen Märkten, derzufolge lediglich Transportkosten, Zölle und Steuern zu Preisunterschieden führen dürfen. Wir lösen zudem das Schweizer Servicepaket mit erweiterter Garantie auf und machen dieses dadurch optional. Wir bieten auch weiterhin vorausbezahlte, vier- und achtjährige Servicepakete zu günstigen Preisen an. Für unsere Kunden ist es wichtig zu wissen, dass es nach wie vor nicht notwendig ist ein Servicepaket zu kaufen oder regelmäßige Wartungstermine mit unserem Service einzuhalten, damit der Anspruch auf Teslas Garantie erhalten bleibt. Der Grundpreis für den Tesla Model S beträgt nun 71.900 CHF. Bitte kontaktieren Sie unser Verkaufsteam, um eine Probefahrt zu vereinbaren oder eine Bestellung zu tätigen. Mit freundlichen Grüßen, Tesla Motors It all seems pretty clear and transparent to me. Oh, and this was all reported a couple of weeks ago elsewhere....
      Koenigsegg
      • 9 Months Ago
      look at that picture. No car better than it
      Joeviocoe
      • 9 Months Ago
      Not really any good explanations given in these comments. People seem to want to think that demand is low in Europe. But really, the price was just way too high to begin with. Tesla is still VERY MUCH supply constrained. Especially when they first launched in Europe. They priced to sell very few there, since incentives were more favorable in the U.S. markets. Now, supply is a bit better, they can afford to sell more abroad, and thus can correct the high European price accordingly.
      Actionable Mango
      • 9 Months Ago
      Any time I see a question mark in the titles of a "news" article, I know the answer is "nope".
        skierpage
        • 9 Months Ago
        @Actionable Mango
        Yup. It's the law! Betteridge's law of headlines, https://en.wikipedia.org/wiki/Betteridge%27s_law_of_headlines
      itsme38269
      • 9 Months Ago
      No
      purrpullberra
      • 9 Months Ago
      So it sounds like an adjustment due to currency fluctuations. Makes sense, the ModelS hasn't been on sale for so long overseas that we'd have dealt with this issue yet. I imagine the price in China will fluctuate for the same reasons. If the price drop is close to the currency drop then we can believe that it isn't due to lack of demand. I've read one nameless Tesla hater on SeekingAlpha who insists that demand everywhere, but especially Europe, is down. But he always gets at his numbers by dividing by the $100k+ average sales price he chooses from 6 months or more ago even though we know the ratio of loaded cars is lower than it was at first. If you go to $85k+ it kills the 'lowering demand' claim. Plus we have no idea how many cars are filling the pipeline to China and Europe that no one can count properly. At first I wondered if this story was along those lines. But I've expected that Europe demand would be weak. Elon hinted at that a while back, saying it seemed China was more than making up for it. If sales follow the pattern of owners 'selling' to their friends and colleagues the sales in Europe will come around eventually. Frankly, a little news of the less-than-stellar variety is called for. Tesla can't continue to bat 1.000. A minor stumble like less-than-stellar sales out of Europe can bring things back down to Earth. If a minor stumble costs 10% more stock price so be it. Bring expectations back to normal-ish.
      marc adler
      • 9 Months Ago
      EUROPEANS MOSTLY DRIVE TURBO DIESALS, GREAT GAS MILEAGE & TORGUE & RELIABLE. NO NEED FOR ELECTRIC.
        RyanC
        • 9 Months Ago
        @marc adler
        Yep, that is why those Europeans drive them diesals -- to get better GAS mileage. Great to know that you are also getting much better torgue than you would with an electric... except that that isn't the case at all. torque of electric > torque of diesel > torque of gasoline
        raktmn
        • 9 Months Ago
        @marc adler
        That's why the Europeans are going crazy for the Volvo V60 PHEV Diesel wagon. They can't keep up with demand. It's like having a diesel, but better, cuz it's also 'lectric.
        paulwesterberg
        • 9 Months Ago
        @marc adler
        also no need for lower case characters.
        John Hansen
        • 9 Months Ago
        @marc adler
        MOAR TORGUE!!! AROOOGGGAAA!
        atc98092
        • 9 Months Ago
        @marc adler
        I'm a diesel fan, and that is a stupid statement...
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