This is Tesla Inc.‘s fifth price cut this year: Elon Musk looks to further dominate the American SUV market.
Tesla’s Model Y is already one of three models Best-selling sport utility vehicle in America last year. This is surprising given that the Model Y’s starting price is more than double that of his longtime favorites in the market, the Toyota RAV4 and Honda CR-V.
Bloomberg has been tracking how much Tesla charges for its models compared to the industry average since the beginning of the year (see previous report). here and here). Read on for four stories born from the company’s latest cut.
The Model Y Drop is Transformational
A 24% price drop in three months is unheard of for such a mass-produced vehicle. The closest analogue might be the Model T, which Ford made dramatically cheaper in his 1920s. Assembly line movement.
Model Y now starts at $49,990, or $42,490 if eligible for federal incentives. Edmunds says this is about $5,300 less than the average price he was paid for a new car in the US in March.
Tesla’s top model is cheaper than ever
Base versions of the Model 3 and Y aren’t cheap compared to average new car sales prices. The Model S and Model X were slightly cheaper on this basis in late 2020.
Standard Range Model 3 now starts at $41,990. Eligible for a federal tax credit of $3,750 as of April 18, the eligible consumer price will be $38,240. This is considerably less than the BMW 3 Series — a common model. measured against — This starts at around $44,000.
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The constantly fluctuating Tesla price unique in the automotive industryThey tend to track the broader U.S. market closely, as Bloomberg set up earlier this year. , the Model S was typically about double the price.
In late 2020, right before Tesla redesigned the interiors of the Model S and Model X, it was the only time that prices had veered away from these trends as recently. The price skyrocketed shortly after the release of the new version.
It is not clear if that dynamic repeats model 3 and world, reported by Reuters, will be updated later this year. The Model S and Model X updates coincided with supply shortages that pushed up prices across the industry. As these disruptions ease, so will prices.
Bad news for other automakers?
Analysts are divided over whether Tesla’s price cuts signal weakening demand or if it’s part of a long-term strategy to cut costs while expanding the market it can serve. Price cuts are putting pressure on other automakers. already had problems It makes a profit by manufacturing electric cars.
Tesla has launched a price war between battery cars and internal combustion engine cars. just started.