Tesla Increases Model 3 Prices Yet Again

Industry News / 10 Comments

It's the second price increase in less than a month for the electric sedan.

It's a new day, so obviously, Tesla had to increase the price of the Model 3 Long Range and Performance models. Okay, that was a cheap shot, but Tesla can't seem to settle on a price for its products. This latest price increase is the second in less than a month after the American EV manufacturer increased the cost of all its products in mid-March. For now, the base Model 3 with rear-wheel drive costs $46,990 and is unaffected by the latest increase, but more powerful models haven't been as lucky.

Last month, the Model 3 Long Range's price was increased by $2,500, while the Performance's price went up by $3,000. This week, the Long Range price increased by $1,500, while the Performance went up by a further $1,000. It all means that Tesla's cheapest sedan is suddenly far from cheap.

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CarBuzz

As recently as the fourth quarter of 2021, the Long Range's price was set at $49,990, while the Performance retailed for $57,990. At the time of writing, the Long Range costs $55,990, while the Performance's price is now $62,990. That's a 12 percent increase for the Long Range and an 8.6 percent increase on the Performance since Q4 2021.

While this may seem drastic, it aligns with the current market. On average, car prices increased by roughly 12 percent, making the Model 3 Performance a bit of a bargain. And Tesla's price increase is insignificant compared to the used car market, where the average price of cars and trucks has gone up by more than 40 percent.

Tesla
Tesla
Tesla

Elon Musk revealed why the prices of his products are going up so frequently a few months ago. "Prices increasing due to major supply chain price pressure industry-wide. Raw materials especially," Musk stated in a tweet at the time.

In short, it's not a Tesla problem but rather an industry problem. The entire automotive industry currently has supply chain difficulties, but at least Tesla can still build cars. Rivian is still struggling to get cars out the door, and it tried but failed to increase the price of its products by 20%.

Despite these increases, the Model 3 continues to dominate its segment. The Hyundai Ioniq 5 appears to be a decent alternative, but its EPA-estimated range of 303 miles is still significantly lower than the best Model 3. A few Hyundai dealers have also been cheeky with the prices. At least with Tesla, you know the price you pay won't be subjected to "market adjustment," which is just an intelligent euphemism for ripping people off.

Tesla
Tesla
Tesla

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