Isn't that only when you include the federal tax credit?
https://jalopnik.com/tesla-model-3-and-model-y-cost-less-tha...
> At $38,990, the base Model 3 sedan now costs $8,700 less than the average amount paid for a car or truck in the US. The starting price for a Model Y SUV is $3,700 below the average auto price of roughly $48,000, according to an analysis by Bloomberg Green. Tesla started cutting prices at the start of the year, twisting the screws on legacy automakers that were already struggling to make electric vehicles profitably.
> “Now the fun part of cost declines ... life after price parity,” said Sam Korus, an analyst at Ark Investment Management, which manages funds with approximately $1.27 billion in Tesla stock. “There is no reason why battery costs or EVs should halt their price declines at price parity. The product can continue to cost less, or it continues to sit in the same price segment and performance improves.”
Not sure why Jalopnik would compare the Model 3 prices to a "segment" including cars and trucks.
Perhaps because the actual average price for a new mid size sedan in October 2023 is actually $32,400...
> The starting price for a Model Y SUV is $3,700 below the average auto price of roughly $48,000
The average price for a new Crossover SUV in October 2023 is $35,700.
I think it's highly disingenous to compare against "all cars and trucks", not against segment.
Now the Model S is almost at the average in its segment, starting at $74,900 versus $73,536 for the "luxury car" segment (I don't actually agree that the Model S is a luxury car, more 'high end', but we'll go with it.
Source: KBB via https://clark.com/cars/average-new-car-price/
https://money.com/ev-vs-gas-cars-price-difference-decreasing...
Next year the tax credit will be incorporated into the sale price which should help sales.
And idk the idea that the average American needs the 7500 credit baked into the price or they simply won't do enough research on their $50000 put hase to realize it exists otherwise doesn't seem great. It's either a stupid change, or the average car buyer... Isn't the brightest.