Tesla has just raised the price of the Model 3 Long Range by $1,000 in the U.S. This is a rare move as Tesla has been lowering prices quite a bit lately.
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Tesla Actually Raises Prices Model 3 Long Range
In a rare price reversal move, Tesla has raised the price of the Model 3 Long Range by $1,000 in the U.S. This move comes after the Model 3 lost all EV tax credits in the U.S.
In some sense, this move is not surprising. However, the new Model 3 "Highland" is also in heavy demand as Tesla has had to push back delivery dates for this vehicle - a good sign that demand is strong.
Consider that the price of the Model 3 Long Range is quite a bit more than the Model Y Long Range, factoring in the EV tax credit:
* Model 3 Long Range: $46,990 (no tax credit)
* Model Y Long Range: $41,490 ($7,500 instant tax credit)
That's $5,500 more expensive for the Model 3 Long Range. This proves that its features and functionality make it desirable - even at a higher price. MKBHD called it the easiest to recommend EV on the market today.
The price is now $46,990 instead of $45,990. The Model 3 RWD price is left unchanged at $38,990. I would be surprised if Tesla lowered the price of the Model 3 RWD. Factoring in inflation, it's already cheaper than the $35,000 reveal that happened in March 2016, nearly 8 years ago.
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What Other Price Changes To Come?
As Tesla continues to improve its vehicles, there could be more price raises to come. If interest rates from the FED go down this year, expect prices to go up on Tesla vehicles.
The reason the prices will go up is that lower rates means lower monthly payments, which means more people can afford the vehicle in a loan. Most people need a loan and cannot buy the vehicle outright.
This is why they get a loan and those loans are service by banks, generally, who follow interest rates almost to the letter based on treasuries from the government. Treasuries are generally considered the most risk-free investment there is, and a loan interest rate will be higher than that risk-free rate - otherwise the bank would just invest in treasuries.
When the Model Y Juniper gets released later this year, that could signal a price increase in the Model Y. The reason for that is it will have all the new features the Model 3 has now plus a $7,500 tax credit.
Look for Tesla to likely start discounting existing inventory by quite a bit before the release of the new Model Y.
Prices remain unchanged on the Model S/X, Cybertruck, and all Model Y variants in the U.S.
In Other Tesla News: Getting Launched In An Original Tesla Roadster - The Moment That Changed Everything For Me About Tesla
What do you think about this price increase by Tesla? Is this expected and a good move?
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Hi! I'm Jeremy Noel Johnson, and I am a Tesla investor and supporter and own a 2022 Model 3 RWD EV and I don't have range anxiety :). I enjoy bringing you breaking Tesla news as well as anything about Tesla or other EV companies I can find, like Aptera. Other interests of mine are AI, Tesla Energy and the Tesla Bot! You can follow me on X.COM or LinkedIn to stay in touch and follow my Tesla and EV news coverage.
Image Credit: Tesla, Screenshot
Article Reference: Tesla
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