A Tesla Car Costs Less Than $20K If You Live In This State: Elon Musk Agrees It Has 'Best EV Incentives In Country'

Tesla, Inc. TSLA has drastically brought down electric-vehicle prices in the U.S. through successive price cuts implemented since the start of 2023, and the state of Colorado, located in the western part of the country, has made EV buying even more affordable with its innate incentive programs.Tesla and its effervescent CEO Elon Musk deemed it fit to publicize the affordability facilitated by the state.What Happened: Tesla influencer Sawyer Merritt on Wednesday shared a screenshot of the Tesla App showing the incentives that can be availed in Colorado. On top of the $7,500 federal EV tax credit to applicable vehicles, the state offers:a $5,350 innovative motor vehicle tax credit for EVs with a maximum manufacturer’s suggested retail price, or MSRP, of $80,000a $5,500 Xcel EV rebate and the MSRP of eligible EVs varies with the model; Xcel Energy is a regulated electric utility and natural gas delivery company based in Minneapolis, Minnesota and its customers get the rebate.a $6,000 vehicle exchange Colorado program, with a maximum MSRP of $80,000Tesla advertised that a Model Y in the state could cost as little as $15,780 after all incentives and gas savings and a Model 3 for $14,780. Tesla’s cheapest Model 3 in the U.S. is the Long Range rear-wheel drive, which costs $34,990 after incentives but not including estimated five-year gas savings. This variant is eligible to receive the $7,500 federal tax credit.Assuming a customer in Colorado buys this car, he could buy it for a cash payment of $19,780, factoring out the gas savings.The Model Y LR RWD variant is the cheapest Model Y EV for Tesla in the U.S. and the configurator page lists the price at $31,490, which includes the federal tax credit of $7,500 and five-year gas savings of $6,000. Without gas savings, a Model Y trim’s cheapest variant costs $37,490.Adding back the gas savings in, the cheapest Model Y available for purchase in Colorado would cost $21,780.See Also: How To Buy Tesla (TSLA) StockElon Musk commented on the influencer’s post, agreeing that “Colorado has the best EV incentives in the country.”Colorado has the best EV incentives in the country— Elon Musk (@elonmusk) August 29, 2024Tesla also offers leasing and financing options, which could make its EVs more affordable.Kelley Blue Book, a vehicle valuation and automotive research company, has listed all three state-specific incentives on its webpage and also a smattering of incentives available through other sources in the state.Why It’s Important: The EV industry is going through harrowing times as demand tapers and industry players, especially the startups are facing the brunt of the aggressive pricing strategy. Some including Fisker and Arrival have already filed for bankruptcy protection and others are struggling with dwindling cash position.The inclement conditions have not spared established legacy automakers, which have ventured into the EV arena. Ford Motor Co. F has scaled back it EV ambitions multiple times in the past and its crosstown rival General Motors Corp. GM is not progressing at the pace it would have desired to.Tesla’s scale of operations and its ancillary businesses have helped the company to stay afloat amid the cut-throat competition but its margins have taken a severe blow, which in turn has impacted profitability. With the Federal Reserve signaling that interest rate cuts could be around the corner, it remains to be seen if the fundamentals would improve.Check out more of Benzinga’s Future Of Mobility coverage by following this link.Read Next:‘Horror Show’ For Tesla’s Q3 Margins, Says Analyst, As Elon Musk-Led Company Extends Zero-Percent Financing To End Of Q3Courtesy of Tesla