VW ID.4 to undercut Tesla Model Y price?
The company intends to sell the electric crossover in the Tiguan's price bracket.
Volkswagen may be planning to make its electric crossover more affordable than the Tesla Model Y.
VW of America chief Scott Keogh recently told Green Car Reports that the company intends to make the EV comparable in price to an internal combustion car. He cited the Tiguan as a specific example for the crossover, rumored to be named the ID.4.
"When I can put these two apples to apples, I think that is positioning it for the masses," he said.
The Tiguan starts at $25,290 (including $995 freight) and tops out closer to $40,000 for the R-Line trim with all-wheel drive.
The Tesla Model Y is expected to command a premium over the Model 3, which currently starts at $38,990 for the Standard Range Plus variant. If the company maintains the same $5,000 spread as the Model S and X, the Y will likely start around $44,000.
To be clear, Keogh's comments leave room for interpretation and he declined to specify if the Tiguan-level price includes the federal tax credit. For the ID.3, the company initially said the electric hatchback would cost around the same as a Golf diesel. Taken together, these potential caveats leave open the possibility that the ID.4 will sell for nearly the same price as the Model Y. Both Tesla and VW seem to focus on more expensive variants at launch, so the cheapest ID.4 and Model Y may be a few years away.
In any case, VW senior VP Reinhard Fischer recently reaffirmed the company's belief that the EV "tipping point" is near. "That tipping point will be price equity," he said.