The best-selling electric vehicle in the U.S. just became cheaper than the average new car or truck.
Tesla has dropped the price of its Model Y, the company’s best-seller, to $46,990, making it $800 cheaper than your average new car in the U.S.
The move comes as Tesla and CEO Elon Musk try to maintain their dominance in the market. While sales in EVs have risen in the past few years, Tesla’s own share of the market has shrunk by at least 10%. More companies with larger production capacities have pushed out their own electric cars and have given customers more options.
Reducing the price is not a new strategy for Tesla. This year, the company lowered the price of the Model X, S and 3. Even the Model Y got a price drop in January after a scary sales slump and stock price drop. The first price decrease made the car eligible for a $7,500 federal tax credit on EVs. Tesla’s cars still outrank all others in terms of sales. According to sales data, the Tesla Model Y, 3 and X beat the Ford Mustang Mach-E and the Chevy Bolt by thousands.
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