Hyundai starts price war with Tesla as it cuts Ioniq 5 SUV pricing by $9,000 and offers 0% APR financing with zero down

Hyundai, which logged a 150% increase in EV sales compared to last September on people flocking to its electric cars over Elon Musk's political activism, has now started a veritable price war with Tesla.

The 2026 Ioniq 5 SUV with Tesla NACS port that doesn't need a Lectron adapter to top up at Superchargers, for instance, gets a massive price cut of up to $9,800, for a starting tag of just $35,000 for the base RWD model.

2026 Hyundai Ioniq 5 price

• SE RWD Standard Range: $35,000
• SE RWD: $37,500
• SEL RWD: $39,800
• SE AWD: $41,000
• SEL AWD: $43,300
• XRT AWD: $46,275

Hyundai says that the Ioniq 5 price drop was possible due to the economies of scale it achieved thanks to the increased demand for its electric vehicles as "these changes reflect Hyundai’s commitment to affordability and its long-term EV strategy, including U.S. production at Hyundai Motor Group Metaplant America and a focus on growing sales volume and market share."

This sounds like a challenge to Tesla, whose EV market share in the US dipped under 50% for the first time this year. Hyundai's electric cars excel in charging speeds and have won numerous awards, but the Korean automaker was somewhat disadvantaged in the US as it was using mostly homebrew batteries and its vehicles didn't qualify for the federal tax credit.

Now that the government's EV subsidy is gone, Hyundai's vehicles have not only remained competitive, but the latest Ioniq 5 price cuts of over $9,000 and the ongoing $7,500 lease credit makes them one of the top contenders for Tesla's market share.

As we move into October, we’re introducing new programs to keep our vehicles accessible, such as repositioning the 2025 IONIQ 5 with extended $7,500 cash incentives and offering up to $9,800 in price reductions on 2026 IONIQ 5 models, reinforcing Hyundai’s legacy of delivering exceptional value and support. While the $7,500 EV credit has expired, our electrification strategy has always extended beyond incentives. We invested in EV innovation well before the IRA and remain steadfast in our commitment to affordability, quality, and customer care.

The biggest 2026 Ioniq 5 price cut went for the SEL AWD trim with 318 miles of range and 320 HP, which has now dropped from $53,100 to $43,300. In addition, there is an $11,000 Retail Bonus Cash promo available on select 2025 Ioniq 5 vehicles available in dealer inventory if delivered between October 1 and November 3, 2025.

If the price cuts for cash purchase or the lease bonus designed to fully mimic the federal tax credit aren't enough, Hyundai is also offering a 0% APR financing on all Ioniq 5 trims for up to 72 months now, too, with no down payment required.