With a Tesla Model 3 ironed under 40,000 euros bonus deducted, the American brand displays an almost unbeatable value for money compared to its competitors on the electric market.
A historic drop. During the night from Thursday to Friday, Tesla considerably lowered the price of its two most popular models, the Model 3 and Model Y. In France, but also in other markets in Europe or the United States, often with a new price to benefit from state aid.
13,500 euros reduction for the Model 3
For the Model 3, the discount is impressive. From 53,500 euros, the basic version is now offered at a final price of 39,990 euros, a decrease of 13,500 euros. With this double effect: the drop in price to 44,990 euros again allows the sedan to benefit from the ecological bonus, which does not concern new models sold at more than 47,000 euros. Result: the public subsidy just allows it to drop below 40,000 euros, approaching its floor price of 2021 with the SR+ at 36,800 euros.
Same mechanism on the Model Y SUV, with a price that goes from 49,990 euros (the old bonus ceiling reduced in 2022 was 50,000 euros), to 46,990 euros. Without taking an option, the customer will also be able to benefit from the 2023 bonus and obtain a final price of 41,990 euros.
Which competitors?
It is always difficult to compare Tesla to other manufacturers, as the American company offers a different experience on several levels. Often opposed to premium brands, such as the Germans BMW, Mercedes or Audi, its price positioning on its most affordable models also places Tesla in direct competition with certain generalist brands.
This is all the more the case with the price drop: if we oppose the Model 3 to the latest Renault Mégane E-Tech (exclusively sold in 100% electric), the French can still seem competitive with its starting price at 39,000 euros, and therefore 34,000 euros bonus deducted. But the Mégane remains smaller at 4.20 meters, almost 50 centimeters less than the Model 3, and above all displays performance a good notch below (130 horsepower, 40 kWh battery with a range of around 300 km and power “fast” recharging limited to 85 kW)
To achieve a range closer to that of the Tesla sedan (491 km), you should rather look at a version of the second level of finish (techno), which offers around 450 km of range and a charging power of up to 130kW. Problem: we already exceed the price of the Model 3, while we would still have to add a few options to get closer to the American in terms of equipment.
Same observation if we look at Peugeot and its 2008 SUV, offered in a 100% electric version, but again shorter than the Model 3/Model Y duo with a length of 4.30 meters. And if the basic version is sold from 39,940 euros (34,940 euros bonus deducted), it is rather necessary to count 44,420 euros (39,420 euros bonus deducted) in high-end GT finish and by adding some equipment. Slightly lower price, but we are still very far from Tesla standards in terms of performance and autonomy.
At Volkswagen, the ID.4 with a 77 kWh battery, and therefore greater autonomy than the Model Y (526 km against 455 km), currently starts at 51,900 euros. It is therefore already more expensive and is not eligible for the ecological bonus in France.
Tesla, between low-cost and premium?
If we only keep the price criterion, a model is necessarily essential at the start of 2023: the MG4. At 4.28 meters, the Chinese sedan (MG belongs to the SAIC group) remains much shorter than a Model 3, but displays a starting price of 28,990 euros (23,990 euros bonus deducted). By taking the latest level of finish and the options offered to get closer to a Tesla, in particular with a range that increases from 350 to 435 km, the price remains very competitive, at 35,990 euros (30,990 euros bonus deducted), but still far from the services found at Tesla.
Conversely, in premium, what is the difference with competitors? A BMW i4 already offers a good level of performance: the German sedan starts at 53,550 euros with 286 horsepower and 478 km of autonomy. We will rather compare it to a Model 3 Performance, sold from 59,990 euros. A price which also fell by 10,000 euros overnight from Thursday to Friday. Enough to make the most powerful Model 3 also more interesting than more efficient versions of the i4, with the 340 horsepower which starts at 61,500 euros.
It remains to be seen how the competition will react, among generalist and premium brands.
“Tesla comes to put pressure on everyone. When you have a competitor who cuts prices by looking for volume, it puts competitors in an uncomfortable position, when they were hoping for a ‘pricing’ [un environnement de prix] favorable on electric vehicles”, reacted thus a financial analyst to our colleagues at BFM Bourse.
