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May 16, 2023 01:36 AM

Tesla offers extra discounts to German company-car buyers

Including government subsidies, the Model 3's price can be cut by 30 percent and the Model Y by 25 percent.

Bloomberg
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    BLOOMBERG

    Tesla increased discounts for business customers in Germany in a sign of the electric-car maker's increasingly aggressive pricing tactics.

    For fleet buyers, the company is now offering an additional discount of 2,250 euros ($2,447), a company spokesman said on Monday.
    The incentive will be valid for all immediate orders of the Model 3 and Model Y vehicles delivered by the end of August.

    Including government subsidies, rebates can now total as much as 9,750 euros — about 30 percent of the price of a Model 3 and roughly 25 percent of a Model Y.

    Company cars are an important part of the German auto market. Tax incentives make them a popular perk for employers.

    The offer is timed to coincide with the final months of a government program for businesses, which expires on Sept. 1. The bonus will then only be available to private customers.

    Tesla has indicated it will keep cutting prices to stoke demand even after markdowns early this year took a significant toll on profitability. Similar strategies have backfired on other automakers in the past.

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