Inflation Adjusted Cost of Model 3 RWD Less Than It Was When Announced

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The inflation adjusted cost of the Model 3 RWD is less than what is was when it was announced.

Inflation Adjusted Cost of Model 3 RWD

With the recent price drops on the Model 3 RWD, it is now less than what it cost when it was announced in 2014 at $35,000. This is much cheaper than most realize when you factor in inflation.

$35,000 is worth about $44,624.65 today when you look at the inflation rate from 2014 to 2023. For instance, inflation changed like so in the last 9 years:

* Price Change: 27.5%
* Average Inflation: 2.74%
* Price Difference: $9,624.65
* CPI in 2014: 236.736
* CPI in 2023: 301.836
* Inflation in 2014: 1.62%
* Inflation in 2023: 4.98%

It's incredible to me that in a higher inflation environment that Tesla is cutting prices and not just cutting them a little - they are cutting them by a lot.

I expect prices to be cut even more as the year goes on - I may even be too conservative. It's possible we will see a $35,000 Model 3 RWD by year's end.

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How Much Lower Will It Go?

The Model 3 RWD is the car I own, and I bought it in August 2022, for $44,990. I got the metallic gray color for free, which now costs $1,000 to add. In the end, it looks like I could have got a much better deal had I waited until this year to get the latest version of this vehicle.

But, I don't have a crystal ball and can't see the future, but had I been listening to Elon Musk more and how he has been saying affordability is the biggest issue with a Tesla, I would have seen this eventual outcome of prices lowering.

Still, I'm very happy with my Tesla Model 3 RWD and see it as a car that will last me a long time - though I have a Cybertruck on order and that might be something I switch to when that is ready to order.

The price of the Cybertruck is likely to come down with these price cuts on the Model 3 and Model Y. A sub $80,000 seems like a done deal at this point...

What do you think about the Model 3 RWD? Is this a vehicle you would buy?

In Related News: Tesla's 3-Part Ecosystem

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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.

Image Credit, Tesla, Screenshot