Tesla Prices Best Rivals’
EV leader's cuts have started an industry price war.

The lower prices don’t include federal EV tax credits of up to $7,500.
IMAGE: Craig Adderley
Tesla’s Model 3 sedan is now about $5,000 less expensive than the average new vehicle sold in the U.S., according to a Bloomberg analysis.
That differential marks the biggest price undercut the electric-vehicle market leader has ever had compared to the typical model on the U.S. market, Bloomberg reported.
The turnabout results from a series of price cuts Tesla has made this year. Its Model Y, for instance, started off 2023 $13,000 less expensive than before after a cut last month. The carmaker raised its price slightly since then, Bloomberg said.
The cuts started an EV price war among automakers as gas-powered model prices keep rising due to continued supply-chain issues.
The lower prices don’t include federal EV tax credits of up to $7,500.
Tesla has had a history, though, of seesaw pricing, so it remains to be seen how the price war will shake out as automakers jockey for position in a race toward a potentially all-electric future.
LEARN MORE: 5 Automakers Handled Half of All EV Sales in 2022
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