AUSTIN, TX – Following numerous pricing cuts on behalf of Tesla, the company’s Model 3 and Model Y – their two best-selling electric vehicles (EVs) worldwide – are now on par with or even below the average transaction price of a new vehicle in the United States; in fact, the price of a Model 3, when government incentives are added in, is now on par with the Toyota Corolla, Tesla claims.
Bloomberg noted recently that the aggressive pricing model instituted by Tesla could potentially cost the company as much as $1.2 billion a year; however, reports indicate that the EV manufacturer considers the cost worth it in order to bring their pricing model closer to gas-powered vehicles.
Currently, the Tesla Model 3 costs $38,990 prior to taxes and fees; this is approximately $8,700 less than the current U.S. vehicle price. What’s important to note is that price is before factoring in a tax credit being offered by the federal government – in the amount of $7,500 – in order to encourage early EV adoption, as well as additional incentives being offered on the state level.
When taking those into consideration, Tesla claims that the cost of owning a Model 3 – when additional savings on gas are figured in – is now on par with a Toyota Corolla.
How this price parity is achieved is by taking into consideration the average annual gas cost for 2023 Toyota Corolla – approximately $1,650 – along with the price of the 2023 base model, which has an MSRP of $21,900. Based on those two factors alone and excluding maintenance and other expenses, the cost of owning a Corolla over the course of three years would be about $26,850.
Meanwhile, Tesla has given an estimate of approximately $3,000 in gas savings for Model 3 owners over a three-year span of time; figuring that in, along with the $7,500 federal tax credit and an additional $,2000 New York State credit, a Model 3 would cost approximately $26,490 over three years.
Of course, those figures will fluctuate depending on what region of the United States you reside in, and they don’t factor in the cost of maintenance, sales tax, and various fees. However, the numbers don’t lie; Tesla ‘s claim that the price of a Model 3 is now on par with a Corolla appears to be accurate, which should certainly help to open the door to EV ownership to those who were holding out for prices to come down.
Christopher Boyle is an investigative journalist, videographer, reporter and writer for SEARCHEN NETWORKS® as well as other independent news and media organizations in the United States. Christopher works on a wide variety of topics and fields, has been featured in print and online in a variety of publications, from local to national, and helps keep a keen-eye on what’s happening in the automotive world for Auto Buyers Market.