Tesla Inc TSLA CEO Elon Musk Tuesday was about the perception of Tesla as an expensive vehicle.

What happened: “A lot of people still think Teslas are super expensive,” Musk said in an interview with CNBC after the company’s annual meeting on Tuesday. Musk attributes the perception to Tesla starting with expensive sports cars and then moving on to slightly cheaper sedans and SUVs.

“But now we’re at the point where a Tesla’s starting point is actually below the average retail price of a car in the United States,” Musk said. “A Tesla is actually cheaper than people think.”

Tesla is also the safest car on the road, Musk said. “Statistics speak for themselves. It’s not a matter of opinion,” he said.

Why it matters: Tesla started cutting prices in the US in January Discounts of up to 19.7%. The numerous price reductions have made it possible better deliveries in the first quarter for the EV giant and increased pressure on rival EV manufacturers to cut costs to stay ahead of the competition.

However, Tesla has been doing this since early May increased the prices of his Model S and Model X vehicles at $1,000, Model Y at $500, and Model 3 at $250. But despite the recent price increases, Tesla vehicles are still significantly cheaper than at the beginning of the year.

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