Boston, MA 03/10/2014 (wallstreetpr) – Tesla Motors Inc. (NASDAQ:TSLA) has announced it is reducing its Model S purchase price as it strives to increase its sales in Europe, a market that has not been friendly to almost all automobile companies in terms of sales. The reduction in prices will also affect German and Netherland’s Markets.
Germany markets will now be able to buy the MSRP of the Model S for €65,300 down from highs of € 72,000 when the electric car was introduced last year. Netherlands on the other hand will enjoy a price reduction of €4,000 which will see the car going for €66,200. The drop in prices especially in the Germany’s market was necessitated by a decline in demand for the electric car.
Tesla fair price
The reduction in prices according Tesla is as a result of the appreciation of local currency which has gained substantial ground against the dollar over the past several months. The company has pointed out that its current vehicle prices across the globe are aimed at reflecting the exchanging rates.
The company continues to spread its wings not only in the US and Europe markets but also in the Chinese markets which have proved over time to have a huge potential and better returns. Tesla launched its Model S vehicle in China in February 25 with the demand of the vehicle believed to have grown surpassing expectations, the company is also thought to have received substantial pre orders for this market.
Tesla CEO Elon Musk has already acknowledged that the growth is massive of which the demand is sure to surpass the company’s supply especially with the addition of China markets. Tesla reported impressive fourth quarter earnings that came at the back of total revenues amounting to $761 million. The company’s market capitalization currently stands at $30 billion nearing that of the likes of ford and General Motors.
Arizona Officials Invite Tesla CEO
The much talked about Tesla next big project Gigafactory is catching momentum with officials in Arizona having invited Elon Musk to see firsthand the outstanding business environment the region will provide for the project. Arizona is thought to be among the four states in running to be the headquarters of the $5 billion project. Arizona officials want the project to be developed in the state as it is expected to create 6,500 new jobs.