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Tesla is kicking off an electric vehicle pricing war by slashing the prices of its most popular vehicles in the US, Europe, and China.
Thursday night, Elon Musk’s automaker rolled out discounts ranging from 6% to 20% on the popular Model 3 and Model Y vehicles. These latest price cuts come as Tesla’s US vehicles newly qualify for an additional $7,500 tax credit on new EVs as part of the Biden administration’s Inflation Reduction Act. The starting price of a Model S also dropped nearly 10%, while the Model X is down 9%.
Once a luxury item, Tesla’s vehicles will now compete with EVs marketed to more average car buyers. With the starting price of a Model 3 now coming in at $53,990 — before the tax credit — Tesla’s most popular EV can compete with the mass-market offerings from legacy competitors entering the plug-in market en masse this year.
