By David Sachs

Shares in European carmakers fell Wednesday after Tesla cut prices in Germany, signaling fiercer competition among electric-car makers there.

At 1058 GMT, shares in Volkswagen were down 2.5%, Stellantis had dropped 1.6%, Renault was down 3.3%, Mercedes-Benz had fallen 1.8% and BMW was down 2.6%.

The U.S. electric-car company slashed prices by 5,000 euros ($5,439.25) for two versions of its Model Y, according to its website. The Performance model now costs German consumers EUR55,990 while the Long Range model costs EUR49,990. Tesla also cut the base Model Y price by EUR1,900 to EUR42,990.

Fiercer competition and flagging demand are expected to put pressure on electric-vehicle pricing in Europe this year, HSBC analysts said in a note last week.

On Friday, Tesla cut prices again in China, hurting Asian carmaker stocks this week.

Write to David Sachs at david.sachs@wsj.com

(END) Dow Jones Newswires

January 17, 2024 06:25 ET (11:25 GMT)

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