Tesla Slashed Prices: Here Are the Most Affordable EVs

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Want a Tesla? Prices have dropped again this year. 

Tesla recently announced that it is slashing prices on four of its electric vehicle (EV) models for the second time this year. After its first round of price drops in January, Elon Musk stated that there was a surge of interest. With this second round of price drops, he is hoping to generate even more excitement among those looking to make the switch to electricity. If you’re one of those people, then you’ll be pleased to know that there are now more affordable options available than ever before.

Biggest price drops for EVs

The average cost of a new car hit a record high last year at $49,507. According to Kelley Blue Book (KBB), Americans have paid above the manufacturer’s suggested retail price (MSRP) for cars every month since July 2021. The cost of electric vehicles also skyrocketed, with the average cost close to that of a luxury vehicle. But the average price for an EV in December was down 5.5% ($3,594) from the previous month. The average cost of a new EV sold for $61,448 and a used one was at about $42,700.

The Tesla Model 3 saw the biggest price decrease in January, coming in close to 17% cheaper than last year. With these new price cuts, the Model X Plaid is now $109,990, 21% cheaper than last year and the Model S Plaid is $109,990, 19% lower. The Model S and X now start at $89,990 and $99,990 in the U.S., down a respective 5.3% and 9.1% in the latest price cut. These cuts also mean that some of the models qualify for the $7,500 federal tax credit. This brings the price of a car loan down even more.

EV competition heats up

Tesla, which makes up 65% of all electric cars, has slashed prices twice now as the demand for EVs has dropped. Some experts believe that Tesla is continuing to drop prices as its competitors begin to catch up. This will help boost demand and spark sales so Tesla can continue to dominate the EV market. Elon Musk stated, “The desire for people to own a Tesla is extremely high. The limiting factor is their ability to pay for a Tesla…We found that even small changes in the price have a big effect on demand, very big.”

Dropping prices is a common move that car companies use to protect their market share. Tesla’s prices aren’t the only ones that have dropped. Prices for the Hyundai Ioniq Hybrid dropped by 11%. Hyundai discontinued the Ioniq last year to focus on its next generation of EVs. Even with the recent rounds of price cuts Tesla models still don’t crack our list of the cheapest electric vehicles available now. Here are the most wallet-friendly EVs of 2023:

Cheapest electric cars

2023 Chevrolet Bolt EVStarting price: $25,600EV range: 259 miles2023 Nissan LeafStarting price: $28,040EV range: 149 miles2023 Mini Cooper SEStarting price: $29,900EV range: 110 miles

Cheapest electric SUVs

2023 Chevrolet Bolt EUVStarting price: $27,200EV range: 247 miles2022 Mazda MX-30Starting price: $33,470EV range: 100 miles2023 Hyundai Kona ElectricStarting price: $33,550EV range: 258 miles2023 Kia Niro EVStarting price: $39,450EV range: 278 miles

Electric vehicles are becoming increasingly popular as prices come down and ranges go up. If you’re looking for an affordable EV option but don’t want to sacrifice performance or features, then you’ll find plenty of great choices out there — no matter your budget or needs! From Tesla’s Model 3 to Nissan’s Leaf Plus or Hyundai’s Kona Electric — there are now more options than ever before when it comes to going electric.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

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