It’s an important development that helps change the mentality of some people who think that EVs are massively overpriced – although there are still a lot of models on the market that cost well above $50,000, even in Tesla’s portfolio.
Besides the Model Y, Tesla’s Model 3 has long had an MSRP under the average price for a new car in the United States, with the latest cuts bringing the starting price of Tesla’s most affordable model at $39,990, which is $7,759 less than the average amount paid of a car or truck in the US.
With this being said, Tesla isn’t exactly making the cheapest EVs out there, with the Chevrolet Bolt EV starting at $26,500 and other models like the Nissan Leaf and Hyundai Kona Electric being priced from under $40,000. However, few – if any – of the aforementioned EVs have the same clout in the world of EV enthusiasts as Tesla’s offerings.
Even though it had a rough start two decades ago, Tesla seems to be doing just fine now, considering the Model Y was the best-selling EV in the United States last year. Moreover, the series of price cuts employed by Tesla in North America and other markets worldwide made some of its competitors question whether or not a full-blown EV price war is beneficial for anyone.
Ford’s CEO Jim Farley said that price battles are “breaking out everywhere,” while French carmaker Renault said last week that Tesla’s price cuts represent a challenge and that it’s examining its price strategy in response.
Source: Bloomberg