Tesla Inc. increased discounts for business customers in Germany in a sign of the electric-car maker’s increasingly aggressive pricing tactics.
(Bloomberg) — Tesla Inc. 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 ($2,447), a company spokesman said by email on Monday, confirming reports from German media, including trade publication Flotte.de. 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 — about 30% of the price of a Model 3 and roughly 25% of a Model Y.
Read more: Tesla Sinks as Musk Eyes More Price Cuts Despite Margin Squeeze
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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