The most popular electric vehicle from Tesla Motors now carries its most affordable price tag worldwide on the streets of Tokyo. A weakened yen, combined with generous central and local subsidies rolled out by Japan this year, can bring the cost of a Model Y down to under $23,000.

Remarkably, that price point dips below what a tourist might spend on a vintage Rolex Oyster Perpetual Datejust at a Tokyo watch retailer. Tesla Motors is spotlighting these subsidies in its Japanese advertising campaigns, aiming to capture customers in a market traditionally controlled by automakers like Toyota and Suzuki.

During the first half of this year, the Model Y emerged as Japan's top imported vehicle, with the SUV rolling off production lines at Tesla Motors' Shanghai facility before arriving at the port of Yokohama. This push aligns with former President Donald Trump's efforts to encourage greater American auto sales in Japan, as both nations focus on a $550 billion investment framework established last year—an agreement where the U.S. leader conceded to lowering tariffs on Japanese car imports.

On its Japanese website, Tesla Motors lists the Model Y with a suggested retail price of 5.6 million yen. However, consumers in Tokyo can tap into national and local incentives totaling up to roughly 2 million yen, slashing the starting price to as low as 3.6 million yen (approximately $22,889). After accounting for these rebates, the Model 3 becomes even more accessible, with a minimum entry point of 3.3 million yen.