Buyers looking to purchase a new Tesla Model Y will now find that Tesla is charging less for the cheapest version of the Model Y SUV than a typical new vehicle in the US sells for.

A base version of the Model Y now costs $46,990, which is $759 less than the average cost of a car or truck in the US. Since the middle of 2022, this difference has seen a more than $20,000 swing.

In the modern age of the automobile, no manufacturer in history has ever made such a dramatic reduction in price to a high-volume vehicle. Last year in the US, the Model Y was the best selling EV, and it was one of the best selling SUVs of any type.

Although Musk claims Tesla is not starting a price war, others in the EV industry do not see it his way. Notably, Jim Farley, CEO of Ford Motor Company, which last quarter saw its Mustang Mach-E SUV losing considerable market share to the Tesla Model Y, noted last week that price wars are, “breaking out everywhere.”

And the price war is not limited to within America’s borders. In France, French automobile manufacturer Renault SA said that Tesla’s recent spate of price cuts in France are a challenge, and noted it was being forced to examine its pricing strategy, as a result. Meanwhile in China, competing automakers have met Tesla head on, implementing steep price cuts of their own, and at least one analyst says many companies may not survive such a competition.

Last week Morgan Stanley analyst Adam Jonas said that Tesla’s price cuts are so big, that they may actually cause some automakers to begin to back off the generous budgets they have been allocating to their EV divisions as they seek to gain a foothold in the sector, rather than seek to compete directly with Tesla right as the future of the economy is so uncertain. Jonas said, “We are questioning whether this is the ‘moment’ where the boards of the legacy OEMs can reconsider dialing back the magnitude and timing of their EV capex and R&D plans.”