Connect with us

Hi, what are you looking for?

Photo by Zach Shahan | CleanTechnica


Tesla Model Y Now Cheaper Than Average U.S. Vehicle

Throughout the year, Tesla has set the bar for vehicle pricing in the auto industry, as many automakers work to scale their first few electric vehicles. Following Tesla’s sweeping price reductions since the beginning of the year, pricing on the company’s Model Y SUV has officially dipped below that of the average car in the U.S.

Tesla’s entry-level Model Y is currently cheaper than the average new vehicle sold in the U.S. in March, according to recent Kelley Blue Book data in a report from Business Insider. The data shows that the average new vehicle in the U.S. was sold for $48,008 in March, while the entry-level Model Y costs just $47,240 at the present time. Buyers of new EVs paid more during the month, averaging about $58,940 for their new cars.

Image by Zach Shahan | CleanTechnica.

The more-affordable Model Y was quietly added to Tesla’s repertoire early this year, before the company added the lower-range variant to its order configurator in April and reduced it to its current price. Within the past week, Tesla has started raising prices again in the U.S., China, and other key markets on its Model 3 and Model Y.

At the beginning of the year, Tesla’s cheapest Model Y was selling for $65,990 in the U.S., before the automaker made multiple price cuts across its lineup. In addition to the Model Y, Tesla also dropped its entry-level Model 3 in recent weeks to $39,990, down from the previous price of $41,990, before increasing it again to the current price of $40,240 in the past few days. Tesla also quietly added the Model 3 Long Range back to its website this week.

Image by Kyle Field | CleanTechnica.

The most recent price cut came just after new regulations on the $7,500 federal EV tax credit dropped eligibility for the Model 3 to a reduced $3,750 credit.

The reduced incentive was recently applied to a number of cars in the auto industry, as the new rules are meant to incentivize U.S. components and minerals or those working with North American countries or specific trade partners. The base Tesla Model 3 and Model 3 Long Range currently use a Chinese battery pack. Along with federal incentives, some states in the U.S. offer additional buyer incentives on qualifying EVs.

You can see current prices across Tesla’s entire lineup below, along with some information on federal tax credit eligibility.

Model 3 Prices

  • $40,240 — Model 3 Rear-Wheel Drive (federal EV tax credit eligibility: $3,750)
  • $47,240 — Model 3 Long Range (federal EV tax credit eligibility: $3,750)
  • $53,240 — Model 3 Performance (federal EV tax credit eligibility: $7,500)

Model Y Prices

  • $47,240 — Model Y Entry-Level (federal EV tax credit eligibility: $7,500)
  • $50,240 — Model Y Long Range (federal EV tax credit eligibility: $7,500)
  • $54,240 — Model Y Performance (federal EV tax credit eligibility: $7,500)

Model S Prices

  • $87,490 — Model S (federal EV tax credit eligibility: not eligible)
  • $107,490 — Model S Plaid (federal EV tax credit eligibility: not eligible)

Model X Prices

  • $97,490 — Model X (federal EV tax credit eligibility: not eligible)
  • $107,490 — Model X Plaid (federal EV tax credit eligibility: not eligible)

Article courtesy of EVANNEX, by Peter McGuthrie.

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Former Tesla Battery Expert Leading Lyten Into New Lithium-Sulfur Battery Era — Podcast:

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...
If you like what we do and want to support us, please chip in a bit monthly via PayPal or Patreon to help our team do what we do! Thank you!
Written By

We publish a number of guest posts from experts in a large variety of fields. This is our contributor account for those special people, organizations, agencies, and companies.


You May Also Like

Clean Transport

Production of the Tesla Cybertruck is on its way, and with the Model Y surpassing an important sales milestone in the first quarter, becoming...


Growth continued for the Norwegian plugin EV market in May 2023, as combined plugin share hit almost 90%, up from 85% a year ago....


A week ago, I was contacted by a company called TESCAMP. They wondered if I would like to try out their mattress for the...


Why I still love my Model 3 after 3.6 years and almost 100,000 miles. Looking at my Tesla app, my Tesla Model 3 odometer...

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.