Tesla dropped fuel savings from Model 3 price after a German industry group said they were misleading

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Tesla's prices reflect 5,000 euros worth of estimated gas savings, but an industry group of German automakers said the practice could be misleading.

Tesla's website shows car prices that include gas savings of 5,000 euros — but customers must still pay the full price upfront.FRANKFURT - Electric carmakerhas committed to stop using fuel savings estimates to advertise its Model 3 online, a German industry association set up to prevent unfair competition practices said on Wednesday.

The Wettbewerbszentrale independent body, formed by German industry to ensure companies compete fairly, said the U.S. carmaker had been using random and non-transparent fuel savings estimates and that it must drop the practice by March 20.Tesla made a drastic change to its bonus structure before deciding to cut costs by closing stores, salespeople say

Tesla had displayed the 56,380 euro original price for the Model 3 online as well as a price of 51,380 euros when taking account of estimated fuel savings of 5,000 euros over five years, Wettbewerbszentrale said. "Even if 'savings' could be realized, such an amount cannot be deducted from the purchase price or the monthly rate ... because customers must pay the full price at the time of purchase or financing," the association said.A Tesla spokesman was not immediately available for comment.

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