EV Pricing In EU
Based on my observation, EV pricing in EU is suprisingly high when compared to the US prices, which tends to surprise my US colleagues. I will therefore demonstrate the whole process of EU car pricing on two cars: the Tesla Model 3 Long-Range and the Tesla Model 3 SR+.
Tesla Model 3 Long-Range
In the US:
- the base price is $48,990
- Remove $3,875 incentives: $45,115
- (not sure about this, but I think the cars are listed without VAT, so let’s add 8% VAT to be sure): $48724
- Add $1200 Tesla delivery fee: $49924
Now let’s do the same, but this time in one randomly picked country in the EU (Finland):
- Start with $48,990, which is 44006 €
- Add 10% EU import tax of 4400 € to get 48406 €
- Add 24% VAT of 11618 € to get 60024 € which will get you close to official price of 59990 € in Finland.
- Add car tax, which is around 2,6% for zero CO2-emmision car: +1576 € -> 61566 €
- Since the price is now more than 50000 €, you will not receive a bonus of 2000 € from Finnish government for buying an EV.
- Add 600 € Tesla delivery fee, to get the final car price: 62166 €
The final price is 62166 € which, when converted to dollars, is $69224. Compared to the US price of $49924, the price in EU is $20000 or 38,6% higher than the US price.
Tesla Model 3 SR+
US:
- the base price is $39,990
- Remove $3,875 incentives: $36115
- (not sure about this, but I think the cars are listed without VAT, so let’s add 8% VAT to be sure): $39004
- Add $1200 Tesla delivery fee: $40204
Finland:
- Start with $39,990, which is 35925 €
- Add 10% EU import tax of 3592 € to get 39517 €
- Add 24% VAT of 9484 € to get 49001 € which will get you close to official price of 48690 € in Finland.
- Add car tax, which is around 2,6% for zero CO2-emmision car: +1279 € -> 49969 €
- Since the price is less than 50000 €, you will receive a bonus of 2000 € from Finnish government for buying an EV: 47969 €
- Add 600 € Tesla delivery fee, to get the final car price: 48569 €
The final price is 48569 € which, when converted to dollars, is $54060. Compared to the US price of $40204, the price in EU is $13856 or 34,4% higher than the US price.