πŸ”‹ The Model Y as a Big Mac index

πŸ”‹ The Model Y as a Big Mac index
Photo by Oliver SjΓΆstrΓΆm / Unsplash

I wanted to share an interesting snapshot from Bloomberg discussing the cost of a Tesla Model as a Big Mac index.

The Big Mac index is a proxy often used to discuss purchasing power parity between different countries by comparing the price of the famous burger. Given that McDonald's is present pretty much everywhere on the planet with strict processes and economic efficiencies, it's considered a rather fair and practical assessment.

Where to Get the World’s Cheapest Tesla (modified from Bloomberg)

We can see, for instance, that a Model Y in France is closer to the price in China rather than in Denmark or the U.S.

This price is a balance of the tax policies each government has developed (or lack thereof) for eclectic vehicles, but also the willingness of Tesla to drastically cut prices to alleviate growing competitive pressure. Although you could argue that as such, the lower the price, the more any given country is forward-leaning on EVs, the high price in the Nordics indicates that these markets are rather close to EV saturation (no more need for alleviating fiscal pressure anymore or competing fiercely in a very mature market). Β 

What is rather amazing to me is that the EV paradigm has now fully entered Β early core market mode. The electrification of the car is not an "if?" or a "when?" but a "how far?"