At $46,990, the base Model Y now costs $759 less than the average amount paid for a car or truck in the US.
The differential between these figures has changed by more than $20,000 since the middle of last year.
No carmaker has made such a dramatic reduction to a high-volume vehicle in the modern age of the automobile. The Model Y was the best-selling EV in the US last year and one of the top SUVs of any type. While Musk has denied that Tesla is starting a price war, his peers see it differently. Ford Motor Co. Chief Executive Officer Jim Farley, whose Mustang Mach-E SUV lost considerable share to the Model Y last quarter — despite some discounting — said last week that price battles are “breaking out everywhere.”
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