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

Kia Closes Out Summer With a Bang
Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.
Read More →
Indiana Dealership Changes Hands
A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.
Read More →
Texas Dealership No Longer in the Family
The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.
Read More →
Genesis Grows California Presence
The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.
Read More →
August Auto Sales a Mixed Bag
An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.
Read More →
EV Market Humming Along
July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.
Read More →
Auto Loan Delinquency Rates Stabilize
Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.
Read More →
EV Sales Recover in Q2
The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.
Read More →
The Cheapest Hybrids to Fuel
The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.
Read More →
Hybrids and SUVs Gaining Ground
The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.
Read More →