According to Bloomberg, Tesla’s recent adjustments to its electric car lineup have resulted in the entry-level Model Y crossover being more affordable than the average new car or truck in the United States. In fact, the least expensive Tesla Model Y now carries a manufacturer’s suggested retail price (MSRP) of $46,990, excluding the destination charge. This price is $759 lower than the average price of a new car or truck sold in the US.
This development is significant as it challenges the perception held by some individuals that electric vehicles (EVs) are excessively priced. However, it is worth noting that there are still numerous models on the market, including those in Tesla’s portfolio, with prices well above $50,000.
Aside from the Model Y, Tesla’s Model 3 has consistently maintained an MSRP below the average price for a new car in the United States. With the latest price cuts, the starting price of Tesla’s most affordable model now stands at $39,990. This amount is $7,759 lower than the average price paid for a car or truck in the US.
It is important to acknowledge that while Tesla offers competitive pricing, there are EVs available at even lower price points. For instance, the Chevrolet Bolt EV starts at $26,500, and the Nissan Leaf and Hyundai Kona Electric are priced below $40,000. However, among electric vehicle enthusiasts, few, if any, of these aforementioned models possess the same level of prestige as Tesla’s offerings.
Despite a challenging start two decades ago, Tesla has made significant strides and is currently thriving. In fact, the Model Y emerged as the best-selling EV in the United States last year. Tesla’s series of price reductions in North America and other global markets have prompted competitors to question the viability of a full-fledged EV price war.
Ford’s CEO, Jim Farley, commented on the proliferation of price battles, stating that they are occurring across the industry. Similarly, French carmaker Renault acknowledged that Tesla’s price cuts pose a challenge and has initiated a review of its pricing strategy in response.
