Tesla is offering a discount on new Tesla vehicle purchases or free Super Charging miles for 3 years, but there is one condition to this.
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Tesla and Its $3,000 Discount
The EV price war is heating up as Tesla is offering more discounts for purchases of its vehicles. We have a Tweet that shows that Tesla is now offering a $3,000 discount or free Supercharging for 3 years with the purchase of new vehicles, but there is one condition.
That condition is that you must trade in an existing Tesla vehicle. I happen to own a Tesla Model 3 RWD that I bought for $44,900. Right now, that same vehicle costs $43,900, however the metallic blue paint option that I got for free costs $1,000 to add today. Therefore, I am break even in my purchase.
This presents me an interesting scenario. Let's say I go to buy a 2023 Tesla Model 3 RWD for its current price and I add the metallic blue paint option. I can also decide to trade in my current Tesla and get $3,000 off. That means I will pay $40,900. If I stick with the white color, then my final price is $45,630. However, this doesn't include taxes and everything else and the total would be a little less than what I paid in total for my original purchase of a Model 3 RWD in August 2020 - probably by about that same $3,000.
If the trade in value of my 2022 Model 3 RWD ends up being less than $3,000 below the asking price and with the IRA tax credit of $7,500 coming up next year, it actually makes sense for me to buy a new Tesla before March and I'd end up with $7,500 additional coming next year on my taxes.
This is something I'm considering doing and if I do so, will share the details of the final costs and savings. My Model 3 RWD I have right now has been great and had no issues, so there is the small risk of taking delivery of a new Tesla that it could have issues. I've also spent money tinting the windows of my current Tesla, and I don't know if Tesla would honor any value for that.
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The EV Price War
This is another move by Tesla in the EV price war, and I think the primary reason Tesla is doing this is for people who have an older Tesla vehicle that are wanting a newer version.
Tesla is offering free Super Charging for 3 years as an alternative to this as well, however, that doesn't make much sense for me as I don't supercharge very often. For someone who does, though, that might be worth it if their fuel costs for 3 years are more than $3,000.
Imagine someone who has a Tesla from before 2018 or who has one of the older Model 3 or Model Y vehicles. This is a chance for them to extract $3,000 more value from their old Tesla in order to get a new one. Tesla can then take the old Tesla and sell that as well.
I expect to see little moves like this by Tesla to try and give it an upper hand in its sales and keep it on track for 1.8 to 2.0 million deliveries by the end of 2023. The more Tesla can incentivize people with discounts and savings, the more people will make the choice to buy one.
The fact that there is now a $3,000 discount for trading in an existing Tesla is making me consider it, so I know it is working because it has my attention. How much of a difference will it make with other Tesla owners, we'll have to watch the inventory of Tesla vehicles and quarterly reports to find out.
We have an update that this is only for the Model S and Model X vehicles currently. Tesla may change this in the future.
Would you trade in an existing Tesla to get a new one and take advantage of the $3,000 discount?
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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.
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