Tesla Price Drop: How The Model 3, Model Y Stack Up Against The Cheapest EVs

With ongoing Tesla discounts and eligibility for the full federal tax credit, the Model 3 and Model Y now compete with the cheapest EVs.

Here’s how they stack up against the Chevy Bolt EV/EUV, Hyundai Kona Electric and Ioniq5, and Volkswagen ID4.

Tesla is the market leader. That means it has price leverage. With the average selling price of a car now $45,000, a Model 3 priced at around $30,000 with the federal tax credit can exert a lot of leverage.

Case in point: the Model 3 even competes with humble Toyota Camry. The Camry is listed at $26,320, more than a Model 3 with all of the tax credit and rebate benefits in California, as Reuters noted.

Note that prices can be lowered even more with state rebates.*

Also note that all EVs listed below (with the exception of least expensive ID.4 trim cited below) have a range of over 250 miles. There are cheaper EVs with an EPA-rated range of less than 250 miles but those are not included.

Comparison as follows:

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2023 Tesla Model 3 (inventory: California)

• (Model 3 Inventory pricing in Los Angeles area as June 10, 2023)
• Price: $37,830 (2023 Rear-Wheel Drive)
• Full federal tax credit ($7,500): Yes
• Effective price w/ tax credit: $30,330
• Effective price w/ standard state rebate of $2,000 (Calif.): $28,330*
• Range: EPA rated 272 miles

2023 Tesla Model Y (inventory: California)

• (Model Y inventory pricing in Los Angeles area as June 10, 2023)
• Price: $$47,020 (2023 All-Wheel Drive)
• Full federal tax credit ($7,500): Yes
• Effective price w/ tax credit: $39,520
• Effective price w/ standard state rebate (Calif.): $37,520
• Range: EPA rated 279 miles

2023 Chevy Bolt EV:

• Price: $27,000 (EV) and $28,000 (EUV). This is the starting point for dealer pricing.
• Full federal tax credit ($7,500): Yes
• Effective price w/ tax credit: approx. $20,000 (EV)
• Effective price w/ standard state rebate (Calif.): $18,000
• Range: EPA rated 259 miles (EV), 247 miles (EUV)

Because of very limited availability of both the Bolt EV and EUV, markups are common, often driving the dealer list price over $30,000 for the 1LT trim (the cheapest trim) and thousands of dollars higher for more equipped trims.

2023 Hyundai Kona Electric:

• Price: $34,845
• Federal tax credit: No
• Range: EPA rated 258 miles

2023 Volkswagen ID.4 (standard):

• Price*: $40,000 (approx. dealer pricing, which varies)
• Full federal tax credit ($7,500): Yes
• Effective Price w/ tax credit: from approx. $32,500
• Effective price w/ standard state rebate (Calif.): $30,500
• Range: EPA rated 209 miles

More expensive ID.4 Pro S ($54,090 via Edmunds) offers 275 miles of range and an AWD version (also pricier) offers an EPA-rated 255 miles.

2023 Hyundai Ioniq5 SEL:

• Price: $42,659 (via Edmunds)
• Federal tax credit: No
• Range: EPA rated 303 miles

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NOTES:

*In California, the state rebate is typically $2,000. But $5,500 can be added to the standard rebate (for a total of $7,500) for applicants who meet the appropriate income criteria. Also: depending on the municipality in California, additional rebates can be potentially added, driving the price even lower.

The 2023 Tesla Model 3 “order” price is $40,240 (2023 Rear-Wheel Drive)