Tesla's best-selling electric vehicle has hit its lowest global price point in Tokyo, thanks to a combination of yen weakness and generous subsidy programs from both the national and local governments this year. The Model Y's out-the-door price can now be pushed below $23,000, a figure even lower than the cost of a vintage Rolex Oyster Perpetual Datejust watch from a Tokyo boutique.

Tesla Motors (TSLA.US) is aggressively advertising these incentives to challenge the dominance of Japanese automakers like Toyota (TM.US) and Suzuki (SZKMY.US) in their home market. During the first half of this year, the Model Y became Japan's top imported vehicle, with the SUV produced at Tesla's Shanghai Gigafactory.

This pricing strategy comes as U.S. President Donald Trump has been pushing for more American auto exports to Japan. The two nations have also been eyeing a $550 billion investment plan established under a previous agreement, under which the U.S. agreed to lower tariffs on Japanese vehicle imports.

Tesla lists the Model Y's suggested retail price at ¥5.6 million on its Japanese website. However, Tokyo residents can stack up to ¥2 million in combined national and city-level subsidies, bringing the effective purchase price down to ¥3.6 million (approximately $22,889). With the same incentives applied, the Model 3 can be had for as little as ¥3.3 million.

The Japanese price tag even undercuts the fiercely competitive Chinese market, where the Model Y starts at around ¥263,500 RMB (roughly $39,344). In California, despite local incentives offering up to $3,500 for first-time EV buyers, the SUV still commands a price above $36,000.