Tesla Prices Best Rivals’
EV leader's cuts have started an industry price war.

The lower prices don’t include federal EV tax credits of up to $7,500.
IMAGE: Craig Adderley
Tesla’s Model 3 sedan is now about $5,000 less expensive than the average new vehicle sold in the U.S., according to a Bloomberg analysis.
That differential marks the biggest price undercut the electric-vehicle market leader has ever had compared to the typical model on the U.S. market, Bloomberg reported.
The turnabout results from a series of price cuts Tesla has made this year. Its Model Y, for instance, started off 2023 $13,000 less expensive than before after a cut last month. The carmaker raised its price slightly since then, Bloomberg said.
The cuts started an EV price war among automakers as gas-powered model prices keep rising due to continued supply-chain issues.
The lower prices don’t include federal EV tax credits of up to $7,500.
Tesla has had a history, though, of seesaw pricing, so it remains to be seen how the price war will shake out as automakers jockey for position in a race toward a potentially all-electric future.
LEARN MORE: 5 Automakers Handled Half of All EV Sales in 2022
Originally posted on Auto Dealer Today
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →