Why now might be the time to invest in a Tesla: EV models are up to $9,000 cheaper than average new car after series of price cuts (though they’re still more expensive to insure!)

Tesla’s most popular electric cars are now competing with gasoline cars on sticker price after the company’s latest round of cost cuts.

The automaker began cutting prices earlier this year amid slowing demand — and made further cuts to its Model 3 and Model Y EVs at the start of this month.

According to new analysis, the upfront cost of both models is now less than the average cost of a new car — which was about $48,000 earlier this year, according to Cox Automotive.

The base Model 3 sedan now costs $38,990 – about $9,000 less than the typical new car.

The starting price of a Model Y SUV – the best-selling electric car in the US – is now about $3,700 less than the average new gas car – according to Bloomberg.

Tesla’s most popular electric cars are now competing with gas cars on sticker price after the company’s latest round of cost cuts

Electric cars traditionally cost more at the dealer than their gas counterparts. According to Cox Automotive, the average transaction price for EVs was $53,469 in July 2023, compared to $48,334 for gas-powered vehicles.

Tesla’s Model 3 and Model Y are both eligible for a $7,500 federal tax credit — further lowering the upfront price of the vehicles.

According to the automaker’s website, the Model Y starts at $43,990 before incentives and savings — which would be reduced to about $36,490 with the tax credit.

The base Model 3 sedan now costs $38,990 – $8,700 less than the typical new car

Earlier this month, the Biden administration announced that starting Jan. 1, 2024, Americans who buy a qualifying car will be able to take the credit off the sticker price at the dealer, rather than waiting for a tax return.

Some experts welcomed the price cuts, while others warned it could cost the company $1.2 billion a year.

“There is no reason why battery costs or EVs should stop their price declines at price parity,” Sam Korus, an analyst at Ark Investment Management, which manages funds with about $1.27 billion in Tesla shares, told Bloomberg.

‘The product can still cost less, or it can stay in the same price segment and improve performance.’

The starting price of a Model Y SUV — the best-selling electric car in the U.S. — is now about $3,700 less than the average new gas car, according to analysis

Experts have warned of unexpected costs associated with an electric car – meaning it may end up being a more expensive investment than Americans initially expect.

In terms of fuel, electricity is generally cheaper than gas. But charging stations can be hard to find in more rural areas, and installing a home charging station can set you back thousands of dollars.

An Indiana couple told DailyMail.com how the insurance for their Tesla was almost double the price of their petrol car

Insurance premiums for electric cars typically run 5 percent to 15 percent more than for gas models, according to Bankrate, in part because of the newness and scarcity of parts when things go wrong.

One couple told DailyMail.com how the insurance for their Tesla was almost double what they paid for their Volkswagen gas car – despite the models being almost identical in size and costing virtually the same price.

Insurer State Farm quoted the couple — in their mid-30s — $78 for the gas car and $140 for its electric equivalent.