Tokyo offers the world’s cheapest Tesla Model Y at less than $23,000

Tesla’s most popular electric car is cheaper in Tokyo than anywhere else in the world.

The combination of a weak yen and generous government subsidies introduced this year can push down the price tag of the Model Y to under $23,000. That’s less than what travelers need to fork over for a vintage Rolex Oyster Perpetual Datejust at a Tokyo dealer.

Tesla has been highlighting the subsidies in its ads in Japan, targeting customers in the market dominated by domestic brands.

The Model Y was the country’s most imported car in the first half of the year. Tesla makes the sport utility vehicle at its factory in Shanghai.

U.S. President Donald Trump has been pushing for more American cars to be sold in Japan. Both nations are eyeing a $550 billion investment initiative set up last year in a deal under which Trump agreed to lower import tariffs for Japanese automobiles.

Tesla lists the Model Y as costing ¥5.6 million in Japan. But a buyer living in Tokyo can get it from ¥3.6 million ($22,889) thanks to a maximum of around ¥2 million in national and city subsidies. With those benefits, a Model 3 can go for as little as ¥3.3 million.

The Tokyo prices undercut those in notoriously competitive China, where a Model Y starts at around 263,500 yuan ($39,344). In California, where the state offers as much as $3,500 in incentives for first-time EV buyers, the SUV still costs more than $36,000.