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

Ownership Priorities are Shifting
A new survey shows that in the U.S. vehicle quality for generation Z is largely defined by advanced safety features, intuitive technology and premium sound systems.
Read More →
Pump Price Jump Calculated
ISeeCars.com examined fuel costs for different power trains, finding which ones have experienced the biggest hits since the war in Iran commenced.
Read More →
Black Book: Weekly Market Update
Wholesale values fell last week despite the spring season still being in the traditional full-gear mode, analysts said.
Read More →
Arkansas Auto Group Acquires First Indiana Rooftop
Performance Brokerage Services represented both the buyer and seller in the sale of Carver Toyota of Columbus by Carlock Automotive Group.
Read More →
Stellantis to Dive Into U.S. Lending
The multinational maker of Chrysler, Dodge, Jeep, Ram and multiple other brands received conditional approvals for a Utah-based industrial bank.
Read More →
New-Vehicle Prices Rise
With April sales down, higher prices on in-demand large vehicles helped inflate the overall ATP, though increases were under long-term averages, Cox Automotive reported.
Read More →
Black Book: Weekly Market Update
Last week in the wholesale automotive market proved to be a mixed bag, analysts reported.
Read More →
Black Book: Weekly Market Update
Conversion rates were flat last week at 63%, Black Book analysts calculated, as low-mileage and almost-near units outpaced the overall market.
Read More →
EU Auto Association Urges Action
Trade relations between the European Union and the U.S. are at risk, causing the European Automobile Manufacturers Association to push lawmakers to make a decision.
Read More →
Driving into the Super CFC Era
Understanding the risks and benefits of retail accounting and Super CFCs can help you better present options to your dealer partners.
Read More →