The used car dealer K bil in Bærum is taking a hard line against Tesla’s price cuts on electric cars.
Last Friday, Tesla lowered the price of its bestseller Model Y by up to NOK 120,000. As a result, the price of the most affordable model dropped to NOK 431,845.
– Many people laugh at Elon Musk’s many stunts in the car industry, but everyone who has an electric car in their garage should cry. We have spent ten years building up the company and then the angel of death Elon Musk spends a day trying to bring us down, says owner and general manager Magnus Groseth of the used car shop K Bil at Rud in Bærum to Finansavisen.
– Our inventory of NOK 31 million fell ten percent on the spot, he adds.
After Nettavisen mentioned the case, Finansavisen updated its case with the fact that Groseth wants to sell the company on to someone with enough financial muscle to take it over.
– If I sell off and liquidate now, I will be left with around NOK five million. Within a few months, I think more people will dump the prices, so I don’t dare risk losing everything, he says
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Will cause ripple effects
– This will create greater movements in the market than just at Tesla. The most important thing about the price cut is that this opens up opportunities for many more people to get a good, new electric car in light of the recent tax increases, said senior adviser and test manager Ståle Frydenlund at the Norwegian Electric Vehicle Association to Nettavisen on Tuesday.
He believes that the situation is positive for the average consumer, but that it is boring if you have bought a car that quickly becomes cheaper after the purchase. For those who have speculated that the cars would go up in price instead of down in price, it will quickly become a loss.
– I hope the speculators know what they have done, and that they take any losses in stride. It will be like on the stock exchange. The market goes up and down. In any case, it will be an advantage if we move away from the speculator market that has existed, and that supply and demand come into balance.
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The dagger in the back
To Finansavisen, Groseth says that the deposit for several Tesla models he has ordered is also included in the calculation. According to the newspaper, it should be about NOK 2.5 million.
– Last year we had a turnover of around NOK 220 million and at the end of November we were on course for a profit of five million. Subtract eight and we start with three million on the negative side this year, says Magnus Groseth.
In 2022, Tesla was the best-selling brand in Norway, according to the Road Traffic Information Council. 21,300 Tesla cars were registered in Norway last year.
