Tesla price cuts spur dealer discounts and manufacturer incentives on other EVs
When one carmaker controls over 60% of the EV market, any price changes can reverberate through the industry. In this case, Tesla’s steep price cuts combined with gaining access to federal tax credits have sent shockwaves through the industry. Let’s take a look at the first price drops from legacy automakers…
According to KBB, the average transaction price of a new electric vehicle sold in January was $58,725. That’s a 5.4% drop since December, sparked by Telsa’s massive price cuts. Most notably, the Model Y starting MSRP plummeted by five figures, from being thousands of dollars over the average EV transaction price last year to thousands under, now as low as $51,990 for the sporadically available standard range version. Naturally this had a profound effect on its competition, and below is a summary of EV deals we discovered while updating our Electric Vehicle Price Guide and Electric Vehicle Lease Guide.
VW ID.4
Even though they publicly said otherwise, Volkswagen and its dealers were relatively quick to respond to Tesla’s price cuts, and for good reason. With trim levels and drivetrain configurations ranging from $38,995 for a rear-wheel-drive ID.4 Standard to $55,245 for an all-wheel-drive ID.4 Pro S Plus, prospective VW customers now have two luxury-branded EVs entering their trade space: the Model Y, an all-wheel-drive with more cargo space that is nearly identically priced with the high end of the ID.4 price range, and the rear-wheel-drive configuration of the Model 3, which at $41,490, costs less than a comparably equipped rear-wheel drive ID.4 Pro. VW hasn’t lowered their MSRP yet this year like Ford did on its Mustang Mach-E, in fact its last price move was in late December – a $1,500 increase that likely caused many ID.4 reservation holders to forego their opportunity to order a 2023 model (myself included). However, unlike other EV manufacturers, VW quickly rolled out a factory lease offer that passes the entire $7,500 federal EV tax credit to the consumer. Its lease terms are $649/month for 36 months with $3,999 due at signing, 10K miles/year for a 2023 all-wheel-drive ID.4 Pro S, which computes to an average monthly cost of $735/month before tax and license. That’s about $40/month cheaper than Tesla’s lease on a Model Y Long Range.
VW dealers across the country are now offering discounts, some of them substantial, on the ID.4. Topping the list of discounts on 2022 and 2021 models is VW of Perrysburg in Ohio with a $4,108 discount on a 2022 AWD Pro S, followed by VW of Fall River in Massachusetts with $3,000 off on a 2021 rear-wheel-drive Pro S and Cardinale Way VW in Southern California with a $2,000 discount on a rear-wheel-drive 2022 Pro S.
For those that qualify for the $7,500 federal EV tax rebate and don’t want to lease, buying the Chattanooga-built 2023 ID.4 should be more attractive than buying a discounted 2022 or 2021 despite the 2023 model’s higher MSRP. Brooklyn VW in New York has the best deal on a 2023 with a $3,000 discount on an all-wheel-drive Pro S, followed by VW of Fall River in Massachusetts with $2,020 off on an all-wheel-drive Pro S and Peoria VW in Arizona with a $1,500 discount on a rear-wheel-drive Pro S. Check for VW ID.4 deals in your area.
Kia EV6
Like VW, Kia has not reduced MSRPs on their EVs in response to the Tesla’s price cuts yet, but it did improve lease terms on the EV6 somewhat. A 2023 EV6 all-wheel-drive in Wind trim with a $53,925 MSRP can be leased at $754/month for 36 months with $2,754 at signing, resulting in an average monthly cost of $810/month plus tax and license. That’s $37/month more than a Model Y Long Range lease even though the Model Y stickers for almost $1,000 more than the EV6. Settling for the less-expensive rear-wheel-drive EV6 Wind (MSRP $48,700) drops the average monthly cost down to $713/month, which is $60 less than the aforementioned Model Y lease. Kia has been ratcheting up its EV6 lease incentive, now at $2,700, but it continues to bogart a lion’s share of the $7,500 federal EV tax rebate rather than passing it all to the consumer, which results in lease terms that are less than favorable when compared to the competition.
Fortunately for the consumer, many Kia dealers have ditched the exorbitant markups of yore in favor of attractive discounts. Best discount we found is an EV6 Wind AWD priced at $5,700 below MSRP at Kia Store Anniston in Alabama. Next best is from Ron Tonkin Kia in Oregon, with a $3,250 discount on a rear-wheel-drive EV6 Wind. Kia of Irvine and Car Pros Kia of Glendale, both in the hot Southern California EV market, round out the best discounts on an EV6 with markdowns of $3,010 and $3,000 respectively. Find Kia EV6 deals near you.
Kia Niro EV
Frankly, the new-for-2023 second-generation Kia Niro EV seems a bit overpriced for today’s market. Besides overlapping with rear-wheel-drive versions of upscale EVs such as the Kia EV6, Hyundai Ioniq 5, and now the Tesla Model 3, the Niro EV MSRP ($39,550 to $44,550) is also thousands of dollars more than similar front-drive EVs with over 200 miles of range – namely the Chevrolet Bolt EUV, Hyundai Kona Electric, and Nissan LEAF SV Plus. So it’s no wonder that there are Kia dealers that are discounting it so soon after its debut. Largest discounts below MSRP we found are at Ron Tonkin Kia in Oregon ($5,973) and Crowley Kia in Connecticut ($4,860), followed by SoCal dealers Kia of Irvine ($3,590), and Car Pros Kia of Glendale ($2,700).
As far as leasing, Kia recently reduced the monthly payment on its lease offer by $40/month. The terms are now $379/month for 39 months with $3,999 due at signing, for an average monthly cost of $472/month before tax and license, which is only $10/month more than Chevrolet’s Bolt EUV lease. Car Pros Kia of Huntington Beach in Southern California is one dealer that is advertising lease terms that beat the factory offer – $349/month for 39 months with $2,999 due at signing – which works out to an effective cost of $423/month before tax and license. The fine print in the ad lists stock numbers to which the lease special applies, including a few Niro EVs at the Car Pros dealers in Glendale and Moreno Valley. Look for Kia Niro EV deals in your locale.
Quick Takes
Nissan Ariya: This all-new, long-awaited crossover finally started arriving at dealerships in significant quantities last month, just as Tesla dropped the price of the Model Y by $13K. Inventory has ballooned in the past several weeks and some dealers are offering discounts over and above Nissan’s $1,240 “Reservationist Private Offer.” Nissan of Lewisville in Texas is taking $3428 off MSRP on an Ariya Evolve+, while Wesley Chapel Nissan in Florida is discounting an Ariya Engage by $1,000. We even found one dealer the San Francisco area – Concord Nissan – offering a $939 discount on an Ariya Engage. Nissan hasn’t published a factory lease offer yet, but we did find one dealer – Tustin Nissan in California – offering a $0 down, $599/month, 18-month lease on an Ariya Engage priced at $44,735. Look for Nissan Ariya deals near you.
Hyundai Kona Electric: The 2023 Kona Electric can be leased for an average monthly cost of only $382/month, which is currently the cheapest factory lease offer on an EV in the nation. A few dealers are offering discounts from MSRP, including Hyundai San Luis Obispo in California ($2,005 off), Atlantic Hyundai in New York ($1,761 off), and Ourisman Hyundai Laurel in Maryland ($886 off). Most Hyundai dealers are also advertising a Hyundai-backed $750 incentive packaged with low-APR financing, which sweetens the deal a little more. Check local dealers for Hyundai Kona Electric deals.
Hyundai Ioniq 5: This past weekend, Hyundai finally decided to pass the full $7,500 federal EV tax credit to the consumer in its Ioniq 5 lease offer. Terms are now $539/month for 39 months, $3,999 due at signing on a rear-wheel-drive Ioniq 5 SE priced at $46,835. For those that don’t want to lease, Hyundai now has a $1,000 cash incentive on the purchase of an Ioniq 5. Find Hyundai Ioniq 5 deals near you.
Ford Mustang Mach-E: A few remaining 2021 and 2022 models in GT trim are being offered below MSRP at Metro Ford Miami in Florida ($5,449 off), Greenway Ford in Florida ($2,000 off), and Stanley Ford in Texas ($1,208 off). 2023 inventory is growing, and many dealers are now offering what they have in stock at MSRP. Look for Ford Mustang Mach-E deals in your area.
Ford F-150 Lightning: A number of dealers are unwinding massive markups on remaining 2022 models in Lariat trim which, at MSRP, is $7,000 less than a 2023 Lariat. We even found a few discounts: Ford of Branford in Connecticut has a 2022 Lariat at a $2,023 discount, and Chapman Ford in Pennsylvania has a 2022 Lariat at a $1,522 discount. Stanley Ford in Texas doesn’t have a 2022 Lariat, but it does have a top-of-the-line 2022 F-150 Lightning Platinum priced $4,207 below MSRP at $89,997, which should be about $10,000 less than a similarly equipped 2023 model. Find a 2022 Ford F-150 Lightning near you.
Tesla Model Y Standard Range: Yeah, this is the elephant in the room, so I saved it for last. Can’t order it right now, so if you want the least expensive, no-options example of this $51,990 gem, you’ll have to check Tesla’s immediately available inventory at least daily and plunk down a non-refundable $250 fee as soon as it pops up. If you don’t mind paying $2,000 more for big rims and need it in a color other than white anyway, you probably have a bit more time to decide since anything with options seems to hang around in inventory for another day or three, especially after the latest price hike (it actually appeared at $49,990 in January). Tesla’s current lease deal on this 279-mile configuration of the Model Y, even with the $2,000 rims and tires, is a relative bargain for a luxury-branded all-wheel-drive SUV at $523/month for 36 months, with $5,718 due at inception (including the $250 order fee), for an average monthly cost of $667/month before tax and license.
As always, check our Electric Vehicle Best Price Guide and Electric Vehicle Best Lease Guide for the best deals on EVs in the US.
FTC: We use income earning auto affiliate links. More.
Xpeng has officially launched its new G7 electric SUV in China, entering the fiercely competitive electric crossover market with a starting price of just 195,800 yuan ($27,325 USD). The G7 is positioned squarely to compete with the Tesla Model Y and the newly unveiled Xiaomi YU7.
It is priced significantly more aggressively than the YU7, which shook up the industry just last week.
The G7, Xpeng’s seventh model, offers an attractive balance of performance, technology, and value, with an emphasis on the latter.
Like Lei Jun with the launch of the YU7 last week, He Xiaopeng was not shy about positioning the G7 against the best-selling Tesla Model Y.
He compared the specs and pricing with the leading premium crossover. Like Jun, he brought up Tesla’s comparison challenge against the new Model Y:
The G7 is powered by a single rear-wheel-drive electric motor producing 292 horsepower (218 kW), it achieves a 0-100 km/h acceleration in 6.5 seconds. Impressively, the G7 can cover between 602 km and 702 km (374-436 miles) based on China’s generous CLTC standard, depending on the battery option and wheel size.
Two battery options are available, both using lithium iron phosphate (LFP) technology: a 68.5 kWh and a larger 80.8 kWh pack. With Xpeng’s advanced 5C charging technology, drivers can recharge up to 436 km (271 miles) of range in just 10 minutes.
Additionally, the G7 supports Vehicle-to-Load (V2L) functionality, providing up to 6 kW of external power, like the YU7 announced last week.
On the design front, the Xpeng G7 adopts the company’s second-generation “X Face” styling, featuring sleek running lights connected by a continuous LED strip, a closed front end for aerodynamic efficiency, and a distinctive “Star Ring” rear taillight design. Xpeng emphasizes the vehicle’s aerodynamics with a drag coefficient of just 0.238 Cd, slightly higher than the Model Y’s 0.230 Cd.
Inside, the G7 embraces minimalism, replacing conventional buttons with a large 15.6-inch central touchscreen powered by Qualcomm’s Snapdragon 8295 chipset. A standout interior feature is the expansive 87-inch augmented reality head-up display (AR-HUD), developed in collaboration with Huawei, that significantly enhances navigation and driving assistance.
Practicality is emphasized with ample cargo space: an 819-liter trunk that expands to 2,277 liters with the seats folded, plus an additional 120-liter compartment beneath the trunk floor and a modest 42-liter front trunk (frunk).
Xpeng is touting an adaptive AI-driven suspension system that actively adjusts to road conditions within milliseconds, allegedly surpassing comfort benchmarks set by the Mercedes-Benz GLE and Tesla Model Y. Cabin quietness also ranks high on Xpeng’s list of priorities.
Luxury and convenience features include dual 50W wireless phone chargers, a 20-speaker premium audio system, and a panoramic sunroof. Passengers in the second row enjoy premium touches like an 8-inch control screen, individual climate settings, a foldable table, and wireless charging.
The top-tier “Ultra” variant employs two proprietary Turing AI chips capable of delivering a massive 2,250 TOPS of computing power, enabling advanced Level 3 autonomous driving capabilities set to become active via an OTA update by December 2025, pending regulatory approval. Standard versions use dual Nvidia Orin-X chips with 508 TOPS.
The Xpeng G7 starts at 195,800 yuan ($27,325 USD) for the base “Max” variant with 602 km of range, stepping up to 205,800 yuan ($28,720 USD) for the longer-range “Max” (702 km) and topping out at 225,800 yuan ($31,510 USD) for the high-end “Ultra” trim.
Customers ordering the G7 Ultra before July 31 will receive complimentary upgrades including Nappa leather and power door handles.
G7 quickly demonstrated its popularity by securing 10,000 pre-orders in just 46 minutes.
Electrek’s Take
It’s not 200,000 orders within 3 minutes like the YU7, but Xpeng doesn’t have the brand power that Xiaomi has.
Nonetheless, it is pretty impressive.
The price is insane. The specs are competitive with the Model Y, which starts at 263,500 yuan and ranges up to 313,500 yuan ($36,770 – 43,750 USD), but the price starts at about $10,000 USD less.
Between this, the YU7 last week, and a few more models launching this month, the premium crossover segment is about to get crowded in China.
I think the Model Y is in serious trouble in China. We are about to see how it fares with real competition.
FTC: We use income earning auto affiliate links. More.
Tesla’s humanoid robot program, Optimus, is reportedly in disarray amid the departure of the senior vice president in charge, Milan Kovac.
Production has been delayed due to a new redesign, as the robot has yet to prove useful in Tesla’s factories.
Elon Musk has previously set a goal for Tesla to produce 5,000 to 10,000 Optimus humanoid robots this year.
The goal has reportedly been delayed as sources within the Chinese supply chain report Tesla informed suppliers of a 2-month halt on orders.
AI Invest first reported the news, and The Information later corroborated the report:
Two supplier sources said Tesla has not explicitly stated it will reduce robot parts orders but will wait until the Optimus design adjustments are completed before finalizing a new mass production plan and resuming procurement. The adjustments may take two months. Musk recently stated on social media that the new version of Optimus has seen significant improvements over the second-generation Optimus unveiled in 2023 and now includes voice interaction powered by Grok.
The news came after we learned that Milan Kovac, the head of the Optimus program left Tesla last month, just months after being promoted to senior vice-president by Musk.
The new reports confirm that Ashok Elluswamy, who was elevated to senior vice-president in charge of self-driving at the same time as Kovac, is taking over responsabilities.
AI Invest reported some concerns from Tesla about Optimus that reportedly trickled down to Chinese suppliers:
According to Tesla’s feedback to suppliers, Optimus still faces hardware challenges, including overheating in some joint motors, low load capacity in dexterous hands, short lifespan of transmission components, and limited battery life. Tesla is currently evaluating samples from multiple dexterous hand suppliers, testing at least three different technical approaches. On the software side, Tesla may use more synthetic data to train the robot model, improving Optimus’ autonomous operation capabilities and success rate in performing complex tasks.
According to the report, Tesla had secured parts to build over 1,000 Optimus robots earlier this year and built quite a few, but they are currently only used “for moving batteries in Tesla’s battery workshops, with efficiency less than half that of human workers.”
The redesign is expected to delay plans by at least two months and could push many of Tesla’s goals.
However, Tesla is expected to still move ahead with the prgroam and it is likely to unveil the new generation of Optimus robots at its shareholders meeting this year.
Electrek’s Take
As I previously stated, I’m actually quite hyped for humanoid robots, but I don’t think they will be nearly as big as Musk claims and I simply don’t see Tesla having a significant advantage over the competition, which is significant.
Companies like Unitree are already selling robots, Figure has made impressive progress and poached from Tesla, then there’s Boston Dynamics and dozens more.
Kovac leaving just as Tesla is supposed to ramp-up production to 50,000 units next and make this a “multi-trillion-dollar” product is a red flag.The engineer would have certainly received sweet stock option packages when he was elevated to SVP and would have likely made a fortune if he would have been able to deliver on Musk’s goals.
But I think the real product at Tesla now is the stock – hence why they reportedly plan to unveil the next generation of the robot at the shareholders meeting and have it do another shady demostration, like it did at the ‘We, Robot’ event where the robots were remotely controlled by humans.
FTC: We use income earning auto affiliate links. More.
Honda is stepping up its electric scooter game with the launch of its second electric model for Europe, the CUV e:. Following Honda’s previous debut of the EM1 e:, a compact, city-focused moped, the CUV e: brings more power, more range, and more real-world usability to riders who want a practical electric alternative to a 125cc scooter.
Now finally ready for the spotlight, the CUV e: is built on an underbone-style frame and powered by a 6 kW side-mounted electric motor producing 22 Nm of torque. That puts it squarely in the 125cc-equivalent category, allowing it to reach a top speed of 83 km/h (52 mph).
It’s not built for the highway, but rather for urban and suburban riders who want to achieve speeds seen on the fastest of urban roads and keep up with just about any traffic in the city. For that role, it looks like a solid performer – more than capable of keeping up with city traffic or carrying a second passenger.
One of the most useful features, especially for urban residents and apartment dwellers, is its use of Honda’s Mobile Power Pack e: swappable battery system. The scooter carries two of these Gogoro-style removable battery units, each rated at 50 V and 1.3 kWh. Combined, they offer over 70 km (43 miles) of WMTC-rated range. Compared to the Honda EM1 e:’s single Mobile Power Pack battery, the dual batteries of the CUV e: give Honda the chance to pull twice as much power or offer twice the range.
Honda’s swappable battery standard is designed for portability and long life, with each pack weighing around 10 kg (22 lb) and rated for 2,500 full charge cycles. Honda has been slowly building a swappable battery ecosystem, and the CUV e: is clearly meant to be part of that larger infrastructure play.
Charging of the batteries is designed to be done easily off-board, either at home or at a battery station (where available). A full charge from 0 to 100% takes about six hours per pack, but Honda says 75% can be reached in just three hours. While fast charging would be nice, the swappable format means riders can keep an extra pair charged and ready if necessary, eliminating downtime altogether.
Honda didn’t skimp on features, either. The CUV e: offers three ride modes (Sport, Standard, and Econ), plus Reverse Assist for easier maneuvering. It includes a fairly spacious flat floorboard, under-seat storage, LED lighting, a USB-C port, and keyless ignition. Buyers can choose between a five-inch color TFT display or an upgraded seven-inch “RoadSync Duo” screen, which supports turn-by-turn navigation, music control, Bluetooth phone integration, and EV-specific ride data.
Positioned as a mid-range electric scooter, the CUV e: fills the space between low-speed mopeds and larger, premium e-motorcycles. It’s a key piece in Honda’s broader electrification strategy, which aims to introduce 10 or more electric motorcycle models globally by 2025 and reach full carbon neutrality in its motorcycle division by the 2040s.
With anticipated pricing starting at around €4,000 (approximately US $4,300), the CUV e: is expected to roll out in Europe first, with other global markets potentially following. Its combination of practical range, moderate speed, high build quality, and swappable batteries could make it an appealing option in cities where electric two-wheelers are on the rise.
If the EM1 e: was Honda dipping a toe into the electric waters, the CUV e: feels like a confident step forward. It’s not flashy, but it’s functional, well-designed, and undeniably useful, which is exactly the kind of machine that could help electric scooters go mainstream.
FTC: We use income earning auto affiliate links. More.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Sports2 years agoButton battles heat exhaustion in NASCAR debut
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike