Some Tesla models are now selling for less than the average new car in the US. Both the Tesla Model 3 and Model Y have been extensively marked down recently. Automakers like Ford and Rivian followed Tesla’s lead in January in slashing prices. Loading Something is loading.
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Some of the most popular Tesla models are now being sold for less than the average cost of a new car in the US, according to a report from Bloomberg.
The Tesla Model 3 is now selling at nearly a $5,000 discount, the report said, calling it the cheapest price ever seen compared to the average US car.
Meanwhile the Tesla Model Y is also selling as a discount after its price was cut by $13,000 at the beginning of the year.
Today, the lower-end Tesla Model 3 now starts at $42,990, which doesn’t account for an additional $7,500 US tax credit from January which drags the price down further to $35,500.
Meanwhile, traditional gasoline-powered vehicles have sharply increased in price, amid a shortage of computer chips, raw material inflation, and a calculated move on the part of automakers to keep inventories. In January, the average cost of a new vehicle hit nearly $48,000, up $10,000 since the start of the pandemic, Bloomberg said.
Tesla first announced price cuts on January 12, and set a trend among electric vehicle makers including Ford and Rivian which quickly followed suit in doing the same.
Tesla’s price cuts drew a surge in more buyer interest, according to data collected by car-shopping website Edmunds.
That helped spark a massive turnaround for Tesla stock, which tumbled by 65% last year. Just seven weeks into 2023, it has already surged 64% and several analysts are predicting a further rally in the EV maker’s shares.