Tesla Prices Now Rival Average Cars in US After Billions in Cuts

Tesla Inc.’s top-selling electric vehicles now compete directly with gasoline cars on price after the latest round of price reductions. The lower prices could cost the company $1.2 billion a year, according to at least one investor.

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 ...