Photo: Tesla | Edited
Tesla has released the Impact Report 2022, and it's the most detailed yet, with more than 200 pages of information. One of the report's highlights shows that Tesla Model 3 has achieved price parity with its ICE peers. This is even before factoring in the local and federal incentives.
For the past ten years, people have talked about the moment electric vehicles would be as affordable as combustion vehicles. With Li-Ion batteries making up the bulk of an EV's price, affordability meant lowering battery prices. This became even more obvious in the past two years when the cost of battery raw materials went through the roof, affecting EV affordability. But it wasn't just batteries. Inflation made everything more expensive, including vehicles, regardless of their power source.
The economic conditions made many believe that electric vehicles would remain forever expensive. Going carbon-neutral through electrification was also thought impossible in these conditions, and setting up a 2035 or even 2030 combustion-engine ban was madness. But then 2023 came, and Tesla shocked everyone with some of the deepest price cuts in history. After repeated price hikes in the past years, the EV market leader slashed the prices by more than 20 percent. And it kept doing so, with the latest price drop on April 19, just before the Q1 2023 earnings call.
The latest move made the Tesla Model 3 one of the most affordable electric cars on the market. Tesla used this in its Impact Report 2022, emphasizing that the electric sedan has become the first EV priced on par with its ICE vehicle equivalents. With a starting price of $39,990 in the US, the Tesla Model 3 is cheaper than its German ICE rivals, even before considering local and federal incentives. The Audi A4 starts at $40,300, while the BMW 3 Series and Mercedes-Benz C-Class are even more expensive, at $43,800 and $44,850, respectively.
Tesla also shows that its base offering, the Model 3 RWD, comes packed with equipment and software, whereas its rivals come with barebone specifications at their starting prices. Tesla brags about having the best infotainment system on the market. At the same time, the over-the-air updates, LTE connectivity, and Autopilot are unmatched in the auto industry.
Not only is the upfront price more favorable, but the running costs are also lower than other mid-sized premium sedans in the market. At $0.49 per mile, the Tesla Model 3 RWD has a total cost of ownership comparable to the one of a Toyota Corolla ($0.46 per mile), a much cheaper vehicle. This is possible thanks to lower maintenance costs, more affordable electricity, and a higher residual value of used Tesla vehicles.
The Impact Report 2022 reiterates Tesla's plans to build 20 million EVs annually by 2030, stressing the need to make its cars even more accessible. Tesla has reduced the costs to build a single vehicle by almost 50% since 2018 with the introduction of the Model 3 and Model Y. The EV maker wants to reduce that cost by a further 50% with the introduction of its next-generation platform in the coming years. Developing more efficient factories and manufacturing processes, such as the Unboxed Vehicle process, is critical to achieving this feat.
The economic conditions made many believe that electric vehicles would remain forever expensive. Going carbon-neutral through electrification was also thought impossible in these conditions, and setting up a 2035 or even 2030 combustion-engine ban was madness. But then 2023 came, and Tesla shocked everyone with some of the deepest price cuts in history. After repeated price hikes in the past years, the EV market leader slashed the prices by more than 20 percent. And it kept doing so, with the latest price drop on April 19, just before the Q1 2023 earnings call.
The latest move made the Tesla Model 3 one of the most affordable electric cars on the market. Tesla used this in its Impact Report 2022, emphasizing that the electric sedan has become the first EV priced on par with its ICE vehicle equivalents. With a starting price of $39,990 in the US, the Tesla Model 3 is cheaper than its German ICE rivals, even before considering local and federal incentives. The Audi A4 starts at $40,300, while the BMW 3 Series and Mercedes-Benz C-Class are even more expensive, at $43,800 and $44,850, respectively.
Tesla also shows that its base offering, the Model 3 RWD, comes packed with equipment and software, whereas its rivals come with barebone specifications at their starting prices. Tesla brags about having the best infotainment system on the market. At the same time, the over-the-air updates, LTE connectivity, and Autopilot are unmatched in the auto industry.
Not only is the upfront price more favorable, but the running costs are also lower than other mid-sized premium sedans in the market. At $0.49 per mile, the Tesla Model 3 RWD has a total cost of ownership comparable to the one of a Toyota Corolla ($0.46 per mile), a much cheaper vehicle. This is possible thanks to lower maintenance costs, more affordable electricity, and a higher residual value of used Tesla vehicles.
The Impact Report 2022 reiterates Tesla's plans to build 20 million EVs annually by 2030, stressing the need to make its cars even more accessible. Tesla has reduced the costs to build a single vehicle by almost 50% since 2018 with the introduction of the Model 3 and Model Y. The EV maker wants to reduce that cost by a further 50% with the introduction of its next-generation platform in the coming years. Developing more efficient factories and manufacturing processes, such as the Unboxed Vehicle process, is critical to achieving this feat.
Tesla exists to accelerate the transition to sustainable energy.
— Tesla (@Tesla) April 24, 2023
Impact Report 2022 → https://t.co/Zj8onKMJrT
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2022 Highlights
Last year, our customers avoided releasing about 13.4 million metric tons of CO2e into our atmosphere ????
Tesla vehicle emissions are significantly… pic.twitter.com/2CvMNPGeVh
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