Whether you’re an EV enthusiast or a die-hard fan of internal combustion engines, it’s hard to deny the impact that Tesla had on the automotive industry in just the last five years. The electric vehicle and clean energy company produces some of the most popular electric vehicles in the world. It will go down in history as a pioneer in the industry’s push to electrify vehicles internationally. Tesla is responsible for a large percentage of the total EV market share, but plenty of rivals are emerging as the vehicles become more popular. Tesla may have just checkmated its competitors thanks to its recent pricing change.

Tesla and the electric vehicle price war

Price wars are great for consumers because they can get access to more affordable products and services. They can be disastrous to businesses because competition can hurt profit margins. Tesla has been fighting for market dominance as some of the world’s most popular automakers embark on their own journies toward electrification.

Tesla may have been one of the first companies to mass produce EVs back when it was founded in 2003. Two decades later, there are plenty of new kids on the block (in the EV space), and they are seasoned automakers with decades of excellence behind their brands.

So, how can Tesla compete with legacy brands like Ford and General Motors in America as they develop new electric vehicle platforms and models? The short answer is competitive pricing. Automakers like Hyundai and Ford have produced small electric SUVs that are competitive and affordable. The Hyundai Ioniq 5 and Ford Mustang Mach-E have respectively made an impact on the market and automotive fans worldwide.

EVs from automakers other than Tesla are disrupting rankings and quickly gaining on the Model 3, Y, and X. If Tesla doesn’t act quickly, it could lose market dominance to competitors like Hyundai. The South Korean automaker won the 2022 World Car of the Year Award for the Hyundai Ioniq 5 and the 2023 World Car of the Year Award for the Hyundai Ioniq 6. Hyundai Motor Company and its brand also won several other awards at the 2023 New York International Auto Show.

The 2023 Tesla Model Y is a force to be reckoned with

Electric cars will play a huge role in the future, but the current most popular vehicle segment in America is the small SUV segment. So, it isn’t unreasonable to believe that the small electric SUV vehicle segment will be much more popular within the next decade. After all, many automakers like Ford have rolled out small electric SUVs as their first EVs. So, the Tesla Model Y is incredibly important to the brand’s future. Its affordability is vital to the brand’s growth.

Tesla recently slashed 2023 Model Y prices and made a base model available once again after months of the original base model being unavailable. The small electric SUV now starts at just $49,990. The site claims that the Model Y could be eligible for a $7,500 federal electric vehicle tax incentive.

The Tesla Model Y is positioned to dominate

Tesla’s small electric SUV is already the most popular EV in the world at the moment. Its new United States pricing could bring in plenty of sales. However, investors aren’t quite sure how the brand’s new price reductions will affect profit margins in the short term.

InsideEVs claims that all of the vehicles in Tesla’s portfolio just got a significant price reduction. The 2023 Tesla Model Y is more affordable and accessible than it has been in months. Do competitors that are now within the same price range as the Model Y stand a chance?