Honda undercuts Tesla Model Y after slashing Prologue EV lease prices to $399/mo

After introducing new incentives, the Honda Prologue EV is now cheaper to lease than Tesla’s Model Y. Honda believes the Prologue hits the “sweet spot” of the electric SUV market at the right price. Can it compete with Tesla’s best-selling Model Y?

After kicking off production of its first global electric SUV in February, the Honda Prologue began hitting US dealerships in March.

Powered by GM’s Ultium platform (the same one underpinning Chevy, Cadillac, and GMC EVs), the Honda Prologue includes up to 296 miles range. Honda claims it has the “highest standard driving range in its class.”

To make it more “sporty and engaging,” Honda adjusted the platform with multi-link front and rear suspensions.

The 2024 Honda Prologue is available in five variants, starting at $47,400. All are powered by an 85 kWh lithium-ion battery, which can add 65 miles of range in roughly 10 minutes.

All Prologue models include a suite of Honda Sensing safety and driver-assistive tech. Other key features include Google built-in, Apple CarPlay and Android Auto compatibility, and a wireless phone charger.

Two-wheel drive models are powered by a 212 hp electric in the front. Meanwhile, dual-motor AWD variants feature up to 288 hp and 333 lb-ft of torque.

With the $7,500 EV tax credit, the 2024 Honda Prologue price falls as low as $39,900 (without destination).

Honda Prologue EV price compared to the Tesla Model Y

Tesla has the Model Y listed with a starting price of $44,990. With the $7,500 federal tax credit, Tesla Model Y prices fall to as low as $37,490.

And that’s with up to 320 miles range. The AWD Model Y starts at $47,990 or $40,490 with the credit.

However, after slashing lease prices, the Honda Prologue is cheaper than the Tesla Model Y. The 2024 Honda Prologue starts at just $399 per month.

The deal is for a 36-month lease with $3,999 due at signing. According to online car research firm CarsDirect, Honda introduced a new $2,000 lease incentive on all 2024 Prologue models across 15 states.

After the new incentive, lease prices are $70 cheaper than before at an effective rate of $510 per month. In comparison, the Tesla Model Y is listed at $399 per month with $3,999 due at signing, amounting to $513 per month.

With a $1,000 loyalty bonus, lease prices can be as low as $369 per month, with $3,999 due at signing. This amounts to an effective cost of $480 per month.

Meanwhile, several rivals are also offering big incentives to lease their new EVs. The 2024 Chevy Blazer EV starts at $439 per month to lease, which is nearly the same as the gas model.

Genesis is offering deals on its luxury electric SUVs. The 2024 Genesis GV60 EV has an effective lease rate of $506 per month, while lease prices for the larger GV70 Electrified start at just $510 per month.

If you’re in the market for a new EV, there are some massive savings opportunities right now. You can use our links below to find deals on popular EV models in your area.