Tesla Motors Inc (NASDAQ:TSLA) decided to reduce the price of its Model S vehicle in European countries including Germany and the Netherlands. As many expected, the electric car manufacturer followed in the footsteps of its peers in the industry that have been constantly dropping prices of their vehicles.
In Germany, the MSRP of the Model S vehicle was €72,000 when it was first introduced in the country late last year. Tesla Motors Inc (NASDAQ:TSLA) reduced the price of the electric car €65,300. In Netherlands, the price of the Model S vehicle was cut by approximately €4,000 to €66,200. The price of the electric was was lowered to CHF71,900 in Switzerland.
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There had been speculations that the electric car manufacturer decided to cut the price because of weak demand for its Model S car in the region, particularly in Germany, which is considered by its CEO Elon Musk to be one of its key markets in Europe. However, there were only 95 Model S vehicles registered within two months since it became available for sale in the country.
Tesla implements fair price policy
According to Tesla Motors Inc (NASDAQ:TSLA), the main reason for the Model S price reduction is the change or appreciation of the local currency against the U.S. dollar over the past several months. The company pointed out that it is implementing its policy of fair pricing in international markets and that the policy reflects the current exchange rate.
The electric car manufacturer also explained that transport costs, tariffs, and taxes also lead to price differentials under its policy of fair prices in international markets.
New bill allows Tesla’s expansion in Washington state
Meanwhile, the lawmakers in the state of Washington approved legislation allowing Tesla Motors Inc (NASDAQ:TSLA) to expand its stores in the state. The Senate Bill 6272 passed by a 94-2 vote at the lower house in the state, and it is headed to the office of Gov. Gov. Jay Inslee for signature.
The stock price of Tesla Motors Inc (NASDAQ:TSLA) is down 2% to $247.99 per share at the time of this writing, around 1:30 P.M. Eastern Standard Time (EST).