Tesla's cheapest Model Y SUVs are now less expensive than typical new vehicles in the U.S.
The
electric car's unprecedented affordability comes after Tesla issued the
sharpest price reduction of a high-volume vehicle in modern automotive
history.
- The base-level Model Y costs $46,990 in the U.S., $759 less than the average price of a new car or truck in the country.
- The Model Y was the best-selling electric vehicle (EV) in the U.S. in 2022 and one of the three top-selling vehicles in the SUV category overall.
- Tesla has also reduced EV prices in other markets, with French carmaker Renault calling price cuts in the country “a challenge.”
- The China Association of Automobile Manufacturers urged companies in March to put an end to the price war triggered by Tesla's price reductions.
- The race to lower prices may cause some Chinese car companies to shut down, suggested Steven Feng, CFO of EV maker Nio.
- "Price wars are breaking out everywhere," said Ford Motor CEO Jim Farley.
