Shulou(Shulou.com)11/24 Report--

CTOnews.com, October 10 (Xinhua)-- Tesla Model 3 and Model Y are the brand's top-selling electric vehicles in the world, and their prices are lower than the average trading price of American cars, according to a new report. Bloomberg said the price war could cost the company $1.2 billion a year, but at the same price as fuel cars and trucks.

According to the report, the price of the entry-level rear-wheel drive Tesla Model 3 is $38990 before taxes and extras, $8700 lower than the average price of a car or truck in the United States. The Model 3 is now $6500 cheaper than the entry-level BMW 3-Series and $5800 cheaper than the basic Mercedes-Benz C-Class.

That doesn't take into account the $7500 federal tax credit and state subsidies, and the report says the cost of ownership of Model 3 is comparable to that of Toyota Corolla after taking into account federal tax credits and fuel savings.

Let's see if this argument holds up. According to the U.S. Environmental Protection Agency (EPA), Toyota Corolla's average annual gasoline cost in 2023 was $1650. The suggested retail price of the entry model is $21900. Based solely on gasoline prices and basic suggested retail prices, excluding maintenance and other costs, Carola's three-year cost of ownership is about $26850.

Tesla said the price estimate for Model 3 in New York was similar. The brand estimates that it will save $3000 in gasoline costs over three years, plus a $7500 federal tax credit and an additional $2000 subsidy from New York State, and Model 3 may cost as little as $26490 before taxes (CTOnews.com Note: currently about 193000 yuan).

These figures vary from region to region, and these are conservative estimates because maintenance costs, sales tax and other costs are not taken into account. However, the argument of price equality can be said to be no exaggeration.

However, price cuts and investment in Cybertruck production have squeezed the brand's profit margins, which fell from 26 per cent last year to 18.1 per cent in the second quarter of 2023, according to Tesla's second-quarter earnings call.

With a number of competitors' electric cars on the market, such as the Chevrolet Equinox EV and Volvo EX30, Tesla's pricing strategy in the coming months will be worth watching.

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