The Standard Range versions of Tesla’s Model 3 and Model Y have become cheaper by $1000 and $2000 respectively.
Meanwhile, the company has added $1000 to the price tag on the Performance variants of those models.
New prices appeared on Tesla’s website. The entry-level Tesla Model 3 now costs $38,190 (was $39,190 before). The cheapest Model Y is now available at $41,190 (vs the previous price of $43,190).
This price cut is the attempt of Tesla to descend to the price level of new products of Chevrolet – the Bolt EV ($31,995) and Bolt EUV ($33,995).
Their driving ranges are close: the Model 3 and Model Y can cover 263 miles and 244 miles, respectively, on a single charge, while Chevrolet Bolt EV / EUV offer 259 / 250 miles of range.
Chevy and Tesla are not direct rivals, of course. But it is becoming more and more difficult to compete in a fast growing EV segment, and EV makers will have to undercut one another on price to attract buyers.
Some analysts expect that electric cars will achieve price parity with internal-combustion vehicles as soon as in 2023.