Business
Tesla relies on free supercharging and discounts to secure market share in Europe
With free Supercharging offers and price discounts, Tesla is pursuing an aggressive sales strategy to regain market share in Europe.
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Tesla offers European Model Y buyers one year of free supercharging for a limited time.
In the first half of 2024, Tesla recorded a 42 percent decline in sales in Germany, one of Europe's most important markets. The Model Y, Tesla's best-selling vehicle, was particularly affected. To support the weak demand, the company is relying on significant discounts in addition to free supercharging. In Germany, price reductions of up to 6,000 euros are available, an unusual measure for Tesla, which traditionally refrains from an aggressive pricing strategy.
With the offer to charge for free at Tesla Supercharger stations for a year, the company targets customers who want to benefit from the high electricity prices in Europe and the still patchy charging infrastructure. Tesla operates one of the densest charging networks worldwide, which can provide buyers with a significant financial advantage. This offer sets Tesla apart from competitors who cannot offer comparable incentives.
The discount and supercharging programs are specifically tailored to the European market, where Tesla competes in the premium segment with German manufacturers. While Tesla has maintained its market leadership in electric vehicles in the USA, competition in Europe is increasingly having an effect. In China, however, where competition is characterized by more affordable electric vehicles, Tesla pursues different sales strategies.
Tesla aims to sell 515,000 vehicles worldwide in the fourth quarter of 2024. The discount and supercharging initiatives are intended to help achieve this goal and increase the attractiveness of the Model Y. The focus is on Europe, where pressure from local manufacturers and changing market conditions is increasing.