It wasn’t long ago that Tesla was the only name worth mentioning in the American EV market. Elon Musk’s company still dominates EV sales, accounting for just under 60% of the new EVs bought in 2026. But it has already fallen behind globally, with China’s BYD overtaking it as the world’s best-selling EV manufacturer.
Tesla is also facing strong competition in the United States. Companies like Hyundai are producing fantastic EVs for less money than Tesla can manage. Like the IONIQ 5, which competes directly with the Tesla Model Y.
The base Model Y has significantly more range than the equivalent IONIQ 5, with 357 miles compared to 245. Better trims of the IONIQ don’t win out here either, with the extended-range version offering up to 318 miles and the AWD version of the Korean vehicle offering only 290 miles. The AWD Model Y Premium can manage 327 miles, despite the hungrier powertrain.
In terms of raw performance, the entry-level RWD variant of each vehicle has roughly the same 0-60 time. It’s going to take you over six seconds, whatever you’re sitting in, which is historically very fast but not that impressive now EVs have broken how we think about acceleration. A base IONIQ 5 comes with 168 horsepower, while the extended range version cranks out 225 and the dual-motor option gives you 320. Tesla doesn’t have exact figures, but the standard is estimated to have 295 horsepower, the premium AWD has just shy of 400, and the performance AWD may have up to 510. But if those estimates are true, the power discrepancy doesn’t really lead to a significant performance difference.
With the AWD variants, Tesla definitely has a performance edge. It’s a 3.3-second 0-60 time that beats the top-trim IONIQ by 1.1 seconds. However, if you get an IONIQ N, it has a 0-60 time of 3.1 seconds. Handily beating the Tesla and likely disrupting your innards a bit in the process. The N variant, which delivers an astounding 601 horsepower, does come with a price tag in the mid-$60,000s, though.
Where Hyundai does win out is in interior comfort. If you’re buying this as a daily driver, being able to relax in traffic is likely more important than slightly more rapid acceleration in an already fast car.
Teslas tend to be very minimalist. You have cheap, horrendous plastic everywhere, sometimes bits of trim don’t match, and if you want to change anything with the car, you’ll be frantically tapping on an iPad like you’re trying to dodge the 30% tip that follows a 2026 coffee shop order.
Hyundai does a lovely job with interiors these days, so the IONIQ5 is a bit more traditional. You have a lot of physical buttons to use, the interior is far more comfortable, and you have access to things like Apple CarPlay and Android Auto as a bonus. Which is nice, as excluding either is a massive sin.
Tesla’s Korean competitor is packing a slightly better warranty, too, offering a 5-year/60,000-mile basic warranty and a 10-year/100,000-mile battery and powertrain warranty compared to Tesla’s 4-year/50,000-mile basic warranty and an 8-year/120,000-mile battery and drive unit warranty.
The IONIQ 5 also operates on a much more advanced 800-volt architecture. Which means it can use 350 kW DC fast chargers and charge from 10 to 80% in around 18 minutes. The Tesla Model Y uses a 400-volt system, which could take around half an hour to do the same. Tesla used to have the advantage of its Supercharging Network, but that’s no longer exclusive. The Hyundai has access to it too, though non-Teslas do pay more to use them. The 2026 IONIQ 5 also comes with a NACS port as standard, so there’s no messing around with an adapter if you’re using one of Tesla’s charging stations.
With a starting MSRP of $35,000, the IONIQ 5 far undercuts the Tesla Model Y, which starts at $41,380. The gap also seems to have widened thanks to a few incentives Hyundai has introduced, the biggest of which is a $10,000 discount that puts a IONIQ 5 in your driveway for just $25,000. But unfortunately, it isn’t as straightforward as that.
The $10,000 off deal Hyundai offers may not be all that it seems
$10,000 off anything is a significant amount, never mind a $35,000 vehicle. The discount brings the IONIQ 5’s price down to a bargain $25,000. Which is cheap by anyone’s standards. Many cars cost a lot more than $30,000 now, $25,000 is the sort of cash you pay for a base-trim Toyota Corolla, or Honda Civic. Never mind a class-leading BEV. Unfortunately, once you read the fine print the deal is not all it seems.
According to CarsDirect the well-publicized deal only applies if you use Hyundai motor finance, which involves paying rates of up to 6.99% over a 72-month term. Dealers are also permitted to add up to a 1% interest rate markup to this, which means you could be losing a significant amount of that discount in interest. Over the life of the loan, you’ll pay around $31,000, reducing that generous $10,000 to a mere $4,000. Which may not even offset things like tax and the destination fee.
There is a solid alternative, however. If you have solid credit, Hyundai is offering a $5,000 bonus with fewer strings attached and 0% APR financing for 72 months. If you opt for the lower bonus and interest-free financing, dealers can not slap a markup on it either. If you go this route, you’ll likely be paying $30,000 for the EV.
It’s also worth noting that lease deals on the IONIQ 5 aren’t as good as they were a few months ago. 2025 models saw discounts of up to $20,000 when leased, while current offers are hard-capped at $8,000.
Despite the deal not being all it seems, the IONIQ 5 is still a bargain at $30,000. But if you don’t like Tesla and are on the fence about the Hyundai, it’s worth noting that the Kia EV6 is a very similar vehicle that usually retails for a few thousand dollars less.
Technical Specs
| Trim | Longe Range RWD |
|---|---|
| 0–62 mph | 7-7.5 seconds |
| Top Speed | 116 mph |
| EV Range (miles) | 318 |
|---|
| Starting MSRP | $37,500 |
|---|
