Tesla made news on several occasions last year for cutting prices on the Model 3 sedan, but the automaker appears to have reversed course with the introduction of the car’s 2024 refresh. The Model 3 is now the same cost as the Model Y, moving it away from the impressive price point it had for much of last year.
The Model 3 Rear-Wheel Drive’s price remained flat at $38,990, but the Long Range climbed to $47,490, up $1,500 from its launch price and just a few hundred bucks behind the Model Y’s $47,990 starting price. Tesla has not yet introduced a Model 3 Performance with the updated design.
Tesla often offers discounts on vehicles in its existing inventory, and some Model Y Long Range variants are selling at up to $5,000 less than a new Model 3. At the same time, the updated Model 3 is ineligible for federal tax credits, though that could change as Tesla gets its arms around the production of the new car.
This is a surprising move, and the EV market does not need more price increases. There are very few electric models anyone could consider affordable, and some are remarkably more expensive than comparable gas models. Tesla still sells more EVs than any other American company, though, so it will be interesting to see where Model 3 pricing heads from here.
[Image: Tesla]
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