The UK pound has lost its value of more than 15 percent against the American dollar since the Brexit vote. Hence, retailers had to alter their pricing on their imported products. Tesla wrote the following note to its customers via email:
“We have just received some information that we need to share with you – due to currency fluctuations we will be increasing our UK prices for custom orders by 5% on 1 January 2017. Prices on showroom and pre-owned cars will remain fixed at current prices.”
The timing could not be more right for Tesla. They’ll close a lot more sales before the year is over and end on a high note. Potential customers of Tesla might buy inventory cars which can be delivered by the end of this year and contribute to the quarter or confirm their custom orders. The UK was briefly Tesla’s largest market earlier this year. Tesla distributed its Model X in Norway since June. Thus, the country took back its position of being the largest European market for Tesla. Since UK is a right hand drive market, Model X reached it later.
it remains to be seen how Tesla’s sales in Q4 will be affected after the price hike. It is certainly going to make model 3 reservation holders a lot more nervous. CEO Elon Musk said earlier this year that it will cost 30,000 pounds or less in the UK – which is $37,000 and the car will begin at $35,000 in the US.