Volkswagen ID.4 Might Be $24,000 Less Than the Tesla Model Y

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【Summary】VW says it will offer the ID.4 and other electric models at affordable prices compared to Tesla.

Manish Kharinta Sep 23, 2019 9:00 AM PT

Volkswagen ID.4 Might Be $24,000 Less Than the Tesla Model Y

Volkswagen's electrification plans seem too good to be true, which is not surprising considering the company's actions in the past. This time however the German automaker claims that its upcoming electric vehicle will be equipped with the company's MEB electric vehicle architecture.

By utilizing the MEB platform, Volkswagen will be able to offer a wide range of electric models in mass quantities—at affordable prices. The automaker also claims its upcoming range of electric vehicles will be far superior to those offered by Tesla.

As reported earlier, the company is already working on an electric crossover based on its ID Crozz EV concept and it will likely be called "ID.4" or "ID.4x." When launched, this electric model will be Volkswagen's first ever electric crossover to go on sale in North America.

In recent report, Volkswagen of America CEO Scott Keogh commented on the company's approach to pricing its upcoming EV lineup. Keogh said that in comparison to its gas-powered models, the company plans to take an "apple to apples" pricing strategy for the upcoming North American EV models, which is not quite clear.

Keogh refrained from disclosing details about when (and if) the ID.4 will be introduced in the North American market and to what role the current federal tax credit will play in its pricing.

When introduced, the ID 4 will be eligible for the full $7,500 tax credit, which is no longer offered for Tesla vehicles. Since Volkswagen has not provided any further clarification on how the ID.4's saving potential will factor into the car's pricing, its unsure if the price difference would include the federal tax credit deduction or not.

However, if the automaker does price its electric portfolio similar to its internal combustion engine lineup, there will be a substantial price difference between VW's offerings and those of rival EV manufacturers, including Tesla.

The 2019 Tiguan crossover for example, starts at $25,295, meaning that Volkswagen's entry-level electric models might start around 25K, which is around $5,000 less than the Tesla Model 3 and around $18,000 cheaper than the upcoming Tesla Model Y crossover.

Tesla recently hiked the prices of Model Y by $1,000. Even without factoring in the $7,500 federal tax credit, the pricing of ID.4 will probably start around $32,000 with the tax break and around $36,000 without it.

If this turns out to be true, the ID.4 will be considerably cheaper than its rival the Tesla Model Y.