Weak Yen, Big Subsidies Make Tokyo Cheapest Market for Tesla Model Y

The weakness of the yen combined with generous purchase subsidies in Tokyo has made the city the cheapest market globally for the Tesla Model Y.

Tesla's official Japanese website lists the Model Y at ¥5.6 million (approximately $36,000), but residents can stack subsidies from both Japan's central government and the Tokyo Metropolitan Government, totaling up to approximately ¥2 million (about $13,000).

This brings the final on-the-road price down to ¥3.6 million (approximately $23,000). The entry-level Model 3 can be had for as little as ¥3.3 million (approximately $21,000) with the same subsidies applied.

The price in Tokyo is even lower than in the notoriously competitive Chinese market, where the Model Y starts at approximately CNY 263,500 (about $39,000). In California, even with state government incentives for first-time electric vehicle buyers, the Model Y still costs more than $36,000.

Tesla's recent advertising in Japan has prominently featured these purchase subsidies as a core selling point, targeting an auto market long dominated by Toyota and Suzuki.