Throughout the year, Tesla has set the bar for pricing in the auto industry as many automakers work to scale their first electric vehicles. Following the extensive price cuts Tesla has made since the beginning of the year, the price of the Model Y SUV has now officially fallen below the price of the average car in the US.
Model Y cheaper than the average new car
Tesla’s entry-level Model Y is currently cheaper than the average new car sold in the US in March. This is according to recent data from Kelley Blue Book published in a report by Business Insider. Data shows that the average new car in the US sold for $48,008 in March, while the entry-level Model Y is currently just $47,240. New EV buyers paid more this month, averaging about $58,940 for their new car.
Tesla’s entry-level model recent price cut
The latest price cut came shortly after new regulations on the $7,500 electric car tax credit reduced the Model 3’s eligibility to a reduced credit of $3,750.
The reduced incentive was recently applied to a number of cars in the auto industry, as the new rules aim to incentivize US components and minerals or those working with North American countries or certain trading partners.
$7,500 electric car tax credit
The base Tesla Model 3 and Model 3 Long Range currently use a Chinese battery pack.
In addition to federal incentives, some US states offer additional purchase incentives for qualifying EVs.
In Germany, the prices of the Tesla Model Y currently start at 44,900 euros in the smallest configuration – see screenshot above.