Feb. 24, 2023–An entry-level Tesla has recently shown to cost less than the average new car, largely due to the company cutting its prices earlier this year, CBS News reports.
A Bloomberg analysis showed that with a new Tesla Model 3 starting at $43,000—potentially $35,500 with the $7,500 tax credit Americans may claim for purchasing EVs—the vehicle turns out to be “$4,930 less than the average new vehicle sold in the U.S.”
New gas vehicles have been increasing in price: $49,388 is the average as of January according to data from Kelley Blue Book, and is a 6% increase from the year prior.
Though an entry-level Tesla may be less expensive than that, this is not true for EVs as a whole, with “dozens of electric cars at dealerships” having price tags upwards of $50,000, CBS notes.
Soon after Tesla cut their prices, Ford followed close behind, reducing the price of their electric Mustang. Wedbush Securities analyst Dan Ives described this as an “EV arms race” in a research note last month.
“Tesla is uniquely positioned around scale, brand, battery technology, and the Musk DNA while others are aggressively going after market share in this all-out Game of Thrones battle,” wrote Ives.
