Tesla Increases Price of Mid-Range Model 3 Just Days After Launch
However, the price of Tesla’s long-range, dual-motor Model 3 was marked down.
Less than a week after announcing the launch of a new mid-range Model 3, Tesla has quietly increased the price of the vehicle by $1,000 while dropping the cost of its long-range, dual-motor variant.
Last week, Tesla abruptly took its $49,000 long-range, dual-motor Model 3 "off the menu" and introduced its $45,000 mid-range, rear-wheel-drive variant. For most, the 260-mile-range Model 3 is the same vehicle but with less charging capacity, meaning that those willing to sacrifice 50 miles of range would save $5,000 on the purchase price of the all-electric sedan. Tesla has since increased the price of the mid-range unit by $1,000, bringing the new price to $46,000.
In addition to hiking the price of the mid-range car, Tesla also dropped the price of its long-range, dual-motor model from $54,000 to $53,000. The same configuration cost $55,000 earlier this year, making its latest change the fifth price adjustment during 2018 for the dual-motor Model 3 variants. During the first week of September, the automaker increased the cost of select paint colors from $1,500 to $2,000. Less than two weeks later, Tesla again raised the price of its multicoat red from $2,000 to $2,500.
It would appear that Tesla is willing to take a slight hit on the more robust margins of its mid-tier cars and adjust the cost of its optional features for an additional revenue bump, or perhaps the automaker is looking to make up for the potential of lost revenue since it removed the coveted Full Self Driving option from being ordered due to "confusion". Musk noted that he believes that the price of Full Self Driving will be $5,000 when it is available for purchase after ordering. Previously, the option cost $3,000 when ordering a new car, or $4,000 when ordered post-delivery.
The mid-range variant is slated for deliveries beginning in December, meanwhile, consumers are still awaiting the standard range Model 3, which is slated to begin production sometime in early 2019. With Tesla's full EV tax credit being halved at the end of 2018, consumers purchasing a Model 3 who do not take delivery by December 31st will no longer be eligible for the full $7,500 credit.