The Hyundai Ioniq 6 electric sedan is seeing significant price cuts of up to $4,100 – or 10 percent – for the 2024 model year even though it only launched in the U.S. this spring.

A Hyundai spokesman confirmed the 2024 Ioniq 6 price reductions for InsideEVs after the news was first reported by Car and Driver.

“For the 2024 model year IONIQ 6, Hyundai launched a repackaged SE Standard Range trim with a starting price of $37,500,” the Hyundai representative told us in an emailed statement. He didn’t provide details on the repackaged SE Standard Range trim.

“Additional minor pricing adjustments were made to other trims because of production efficiencies and scale, and to make class-leading technology more accessible for a wider range of consumers.”

Including $1,115 shipping, the 2024 Hyundai Ioniq 6 has a starting price of $38,615 for the entry-level SE Standard Range trim that features rear-wheel drive and the smaller 53.0-kilowatt-hour battery. This variant offers an EPA-estimated driving range of 240 miles.

Opting for the bigger 77.4-kWh battery on the SE Long Range rear-wheel-drive model raises the price to $43,565, while going for the SE Long Range AWD model pushes it to $47,065. Still, both variants are now $3,050 cheaper than their 2023 counterparts.

The better-equipped 2024 Hyundai Ioniq 6 SEL and Limited trims see lower price cuts of $2,450 each. The 2024 Ioniq 6 SEL RWD is priced from $43,565, while the Limited RWD starts at $51,265. The long-range, rear-wheel-drive variants of the Ioniq 6 are EPA-estimated at up to 361 miles of range on standard 18-inch wheels.

The same $2,450 cut applies to the AWD dual-motor variants, which start at $49,895 and $54,765, respectively. These dual-motor AWD models offer 316 miles of EPA-estimated range on standard 18-inch whees.

While Hyundai says “production efficiencies and scale” are the main cause for the price cuts, we suspect they may also be related to Tesla’s repeated price reductions in recent months.

A base Model 3 RWD currently starts at $40,380 (including $1,390 shipping), but the Tesla also qualifies for a $7,500 federal tax credit whereas the Ioniq 6 does not.

Earlier this month, Hyundai lowered lease prices for the Ioniq 6 shortly after Tesla did the same for the Model 3 and Model Y. The base 2023 Ioniq 6 SE is currently available for $299 a month with $4,999 due at signing, making it $44 a month cheaper than a Model 3 RWD.