Tesla has once again reduced the price of its inventory. With the updated pricing, customers can purchase a brand-new Model 3 for a little over $35,000 before government incentives.
According to InsideEVs, the cheapest Model 3 RWD in Tesla’s inventory costs $35,090. It includes 18-inch Aero wheels, a partial premium interior, Autopilot, and a 30-day trial for Premium Connectivity. There are a total of 12 Model 3s under $36,000 and 38 vehicles under $37,000 in Tesla’s inventory.
Last month, the lowest-priced Model 3 cost $36,260.
The price cuts are applicable to other Model 3 trims as well. The Long Range trim now begins at $42,740, down from $43,230 last month. The Performance trim now begins at $45,890, compared to $47,420 in November.
Therefore, in a matter of weeks, new Tesla Model 3 prices have dropped by anywhere from $490 to $1,530.
The news comes as a welcome relief to EV customers concerned about the recent changes to US EV tax credit eligibility. Last week, President Biden made it more difficult for EVs that source components from China to qualify for the tax credit. In response, Tesla announced that the tax credit for the Model 3 RWD and Long Range trims will fall from $7,500 to $3,750 on January 1.
It’s true that the latest round of price cuts doesn’t fully make up for the reduced tax credit. Nevertheless, with Model 3 prices having declined by over $13,000 since April 2022, there’s a good chance that further price cuts will happen in the future.
Tesla is making substantial progress in developing an EV that’s even cheaper than the Model 3. Interesting Engineering reports that the upcoming $25,000 Tesla Model 2 is in an “advanced stage of development.”
If the Model 2 ends up being a success, Tesla can use the Model 2 as a blueprint for how to lower Model 3 prices even more.
Image Source: Out of Spec Reviews
