The cheapest Tesla Model 3 is now on sale for $46,990 after this month’s price hike, making the Model 3 an entry-level model. 34% more expensive than three years ago. Surcharges, some of which are industry standards, raise the base Model 3’s total price to $48,440.
The Model 3 was advertised long before it was introduced in 2016 as an affordable car costing around $35,000. The MSRP for the most affordable variant of electric vehicles like the Chevrolet Bolt and Nissan Leaf has dropped from 2019 to 2022, even without inflation. (During this period, the Bolt dropped from $36,620 to $32,495, and the Leaf from $29,990 to $27,400.)
Tesla CEO Elon Musk made the announcement on Twitter. Sunday, shortly before the latest price increase, that Tesla “has seen significant recent inflationary pressures on raw materials and logistics.” Tesla doesn’t appear to have been hit by price spikes over the years as the Model 3 has been the world’s best-selling model. electric car in 2021, about 540,000 units sold. Since the release of the Model 3, Tesla has become the most valuable automaker in the world, only years after it faced the question of whether it would survive as a business.
But the price difference for what is considered an entry-level Model 3 appears to be a departure from Tesla’s original plans. (Tesla did not respond to a request for comment.)
Musk said in an interview with CNBC in 2013 that the automaker would build the car for “about $35,000.” Tesla unveiled the Model 3 in April 2016, with Musk saying “in terms of price, of course it’s going to be $35,000.”Tesla began shipping the Model 3 in July 2017, placing more than half a million orders for the $35,000 car. But Tesla didn’t ship its first $35,000 Model 3 until April 2019. The $35,000 Model 3 hardware matched the $39,500 version of the car, but Tesla used software to limit battery range and disable seat heaters. The $35,000 Model 3 also came without Autopilot, Tesla’s driver-assistance software that is now standard on the cheapest Model 3. Now The most affordable Model 3 has 52 miles more range and a slightly higher top speed of 140 mph versus 130 mph. Price aside, the only obvious downside to today’s most affordable Tesla is a slightly slower 0-60 mph time, 5.8 seconds versus 5.6 seconds. The $35,000 car was also not purchasable online, which seemed to encourage customers to buy a more expensive car. 2019 call with investors. Back in 2006, Musk described that Tesla planned to build a sports car first, then an “affordable car”, and then “an even more affordable car”.
Musk remembered the plan at the bottom of the Tesla battery in 2020. He described the Model 3 and Model Y as “premium cars for the mass market”.
While you couldn’t buy a $35,000 Model 3 back then, Tesla promised an even lower price.
“Our goal has always been to try and make an affordable electric car,” Musk said. “I think in about three years, we are confident that we can make a very attractive electric car for $25,000.” Musk said in January 2022 that Tesla is not currently working on a $25,000 car.
“At some point, we will do it,” Musk said. “But we already have enough on our plate right now.”
Chris Isidore contributed to this report.