Model Y now cheaper than the typical new car for the first time as Tesla touts its record 4 miles/kWh efficiency
With Tesla's recent price cut round, the starting tag of its Model Y bestseller has now fallen below the average new vehicle price in the US for the first time. Ever since the Model Y launch back in 2019, its pricing has been way above what most new cars command in the US, but now it is cheaper for the first time.
The average car or truck in the US now sells for $47,749, but Tesla recently lowered the base Model Y price to $46,990. When we account for the federal $7,500 subsidy that all Model Ys are now eligible for, including the base dual-motor AWD version, the Model Y is exactly $8259 cheaper than the typical new vehicle sold in the US.
Needless to say, the base Model Y is still more expensive than the starting price of the popular RAV 4 or CR-V SUVs, yet those trims have nothing on its acceleration chops. In its latest Impact Report, Tesla also boasts that, at the record 4 miles of range per kWh of battery capacity, the Model Y is the most efficient electric SUV out there as well.
"Greater efficiency than a Prius, performance of a Porsche" is its tagline in the report, while Tesla also gives some interesting tidbits about battery degradation. It turns out that for 200,000 driven miles, which is the average vehicle lifespan in the US before it gets tossed, Tesla's first Model S/X electric vehicles have only lost 12% of their battery capacity on average.
This bodes well for newer ones like the Model Y, too, but these are just too fresh for such a statistic, so Tesla says that it will issue a longevity report for their new battery technologies like 4680 or LFP when it has gathered enough data. The Model Y is also expected to receive a mid-cycle "Juniper" design upgrade in 2024, just like the "Highland" Model 3 that is launching later this year.