The Tesla Model 3 and Model Y, the brand’s highest-selling electric cars globally, cost less than the average transaction price for a car in the US, according to a new report. Bloomberg stated that the price war might cost the company $1.2 billion a year, but the trade-off is price parity with gas cars and trucks.
The entry-level rear-wheel-drive Tesla Model 3 costs $38,990 before taxes and additional fees, $8,700 lower than the average price of a car or truck in the US, as per the report. The Model 3 now costs $6,500 less than the entry-level BMW 3 Series, and $5,800 less than the base Mercedes-Benz C-Class.
That’s before factoring in the $7,500 federal tax credit and state incentives. After applying the federal tax credit and fuel savings, the Model 3’s cost of ownership is on par with a Toyota Corolla, claims the report.
Read Article