From €39,990, the Model 3 is again the most affordable Tesla: what results for the manufacturer?

For about five months, the Tesla Model 3 Propulsion was no longer Tesla’s most affordable model. Things are back to normal with new Tesla pricing starting January 13, 2023.

When it goes on sale in late August 2022, Model Y Propulsion will displace the Model 3 sedan from Tesla’s entry-level role. What then defies all economic logic finds a more appropriate order with the new Tesla prices this January 13, 2023.

Model 3 prices have just been discounted between 10 and 16%. Starting at €53,490 from summer 2022, it can now be had for €39,990 with €5,000 bonus or €44,990. except for the bonus.

Model 3 Propulsion is again eligible for the bonus

The Model 3 Propulsion sedan is €53,440 to €44,990, €8,500 less before any bonus deductions. With a base price of less than 47,000 euros, this version can again be included in the help to buy an electric car. The bonus for 2023 is now €5,000, compared to €6,000 last year, except for the most modest households with a taxable income of less than €14,089, who can get an increased bonus of €7,000. The Model 3 is therefore available as-tested for a more limited crowd, starting at €37,990.

To take advantage of the Model 3 from €39,990 (€5,000 bonus deducted), you need to limit yourself to less than €2,000 worth of options. This generally corresponds to being able to choose only one of the various possibilities:

  • Any color: gray, blue or red;
  • Either a white interior instead of a black interior;
  • Either 19-inch Sport rims instead of 18-inch Aero rims;
  • Or a towing hook.

However, the Enhanced Autopilot option is automatically excluded if you wish to take advantage of the bonus.

Tesla Model 3 configurator in January 2023 // Source: Tesla

-10 to -16% discount on various versions of Model 3

The price reductions of different versions of the Model 3 range from 6,500 euros to 9,500 euros. Model 3 Propulsion isn’t the only one seeing a price drop, Model 3 Long Range and Performance are also benefiting from this price drop:

Model 3 Old price New price Reducing… Interest rate drop
Movement €53,490 €44,990 – 8500 euros 16%
Great Autonomy €62,490 €52,990 – 9500 euros 15.5%
Performance 66490 € €59,990 – 6500 euros 10%

At these new prices, the Model Y engine makes more sense in the lineup. With a starting price of €46,990, it’s €2,000 more than the Model 3 and corrects the anomaly in terms of selling price.

Therefore, the Model 3 Propulsion and Model Y propulsion compatibility may continue to determine which one to choose. The Tesla Model 3 lost its price advantage, regaining that spot, narrowing the debate between the two models.

Price changes are still confusing

Last year saw Model 3 prices rise, mainly because the order book was full and the future uncertain. The Shanghai Gigafactory, where the European market’s Model 3s are made, has seen production capacity disrupted by China’s zero-Covid policy. Due to component shortages and rising costs of certain raw materials, Tesla played it safe by raising prices significantly.

This is a highly controversial method practiced for several years by Elon Musk, who tends to play on the nerves of buyers as well as investors with his unpredictable trade policies. These sudden changes in the price curve quickly create tension, but for Tesla, it allows it to achieve its goal, which is to reduce demand, time to process the flow on the production lines.

While the Model 3 is hitting deadlines for the entry-level model a year ahead of a 2022 price hike, the deadlines are now especially tight.

With such an offer, delays can quickly become long

According to a Tesla configurator, Model 3s ordered today will be delivered by the end of March 2023 at the latest. A delay of less than two months is good news for buyers who are often in a rush to buy a new electric car.

But by lowering the price by the same amount, it’s no surprise that delays quickly lengthened once demand increased. Perhaps the situation that led to the recent price increases. We can expect the roller coaster of prices to continue to fuel the debate.

Second-hand prices that should fall further

The arrival of the Model Y engine at 49,990 euros brought several hundred Model 3s to the second-hand market, which immediately caused the price of this model to drop on the second-hand market.

Examples of Model 3 ads // Source: Buy from Leboncoin
Examples of Model 3 ads // Source: Buy from Leboncoin

This new price drop on new cars won’t please those still trying to sell their used Model 3s, as second-hand prices will inevitably suffer from this new competition from new Model 3s at €39,990.

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