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Tesla Prices Best Rivals’

EV leader's cuts have started an industry price war.

February 22, 2023
Tesla Prices Best Rivals’

The lower prices don’t include federal EV tax credits of up to $7,500.

IMAGE: Craig Adderley

1 min to read


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.

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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

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