Deep dive into the price changes of Tesla Model 3: what's going on here?

Editor's Note (4/13/19) – We have received conflicting information from Tesla regarding pricing and availability of Model 3 features. Our contact with the press did not return our communications and we did not get a direct response from Tesla. However, the consensus seems to be that the $ 35,000 remains an option to some extent.

We are still not sure of the availability of the autopilot on the $ 35,000 model. Ars Technica said the $ 35,000 Standard could be ordered but did not have an autopilot. However, this indicates that by default the price will be higher unless the buyer specifically does not request autopilot. But a Tesla Gallery employee also told us that the $ 35,000 model includes autopilot with no price increase. Whatever the case may be, the $ 35,000 model remains.

We have updated the article to reflect our current knowledge and will continue to contact Tesla for more details.

Tesla will be happier if you buy the most expensive versions

The most recent changes made to the Tesla Model 3 offer not only make another quick adjustment, but also left us with no knowledge about the prices of the five versions of the car.

Tesla decided to create the $ 3,000 autopilot option standard, but at least in some versions, the price has gone up. In the case of the standard plus range, prices increased by $ 2,000 while the full extended version increased by $ 1,000. The price of the Performance version has not changed at all.

"Today, we are making some changes to online orders to simplify vehicle choices and make the autopilot more affordable.

All Tesla vehicles now ship with the integrated autopilot as a standard feature at a lower price than the previous cost of the option. For example, the standard 3 plus model cost $ 37,500 plus $ 3,000 for the autopilot option. It now costs $ 39,500, autopilot included. "

This move was combined with the removal of the Standard Range and Long Range RWD versions of the online design studio. Technically, these two versions are still available, but on individual order per call or in a store, as a higher version limited by software. The prices of these are not shown – we had initially assumed that a price increase would be forthcoming.

Simplification? Profitability?

The last move would have been motivated by the simplification of the offer, but as the autopilot hardware was already identical, there is not much to simplify. In addition, there is no such simplification in the case of the S and X models, which are more expensive vehicles and are more often assumed to be equipped with autopilot than model 3. We believe that it would be more reasonable to make the autopilot mandatory in S / X.

It was the first yellow witness, either to simplify or simply not to be able to offer the basic model at $ 35,000 and to achieve profitability targets.

Where is the norm?

Previous orders of the $ 35,000 3 Standard will be executed using a more limited 3 model, limited to the software. The Standard model will always be available in any form at $ 35,000, but details are scarce. Ars Technica initially indicated that the $ 35,000 Standard could be ordered but did not have an autopilot. This seemed to indicate that the standard default price would be higher, unless the buyer specifically does not request autopilot.

However, as we had not yet received a response from the Tesla Group, we contacted a local American gallery, Tesla. The employee was helpful but seemed also uncertain. His understanding was that the base model will remain $ 35k and this price will include autopilot. We will continue to try to get a firm response from the automaker.

Model 3 Tesla price in the United States

  • Standard Range (2019) – $ 35,000 – ($ 37,000 with autopilot?) *
  • Standard Plus Range (2019) – $ 39,500 (previously $ 37,500, up to $ 2,000)
  • Long Range RWD (2019) – $ 46,500? (previously $ 44,500)
  • AWD Long Range (2019) – $ 49,500 (previously $ 48,500, up to $ 1,000)
  • Performance LR AWD (2019) – $ 59,500 (previously $ 59,500, no change)

* The pricing details with and without autopilot on the Standard model have not been confirmed.

Some prices up, others down

As we can see in the price list, the higher versions have a price similar to that of before, while obtaining the autopilot as standard. In the case of the Performance version, it can be treated as a price drop of $ 3,000, while the long-range all-wheel drive has increased by $ 1,000.

This could be explained by the fact that the first two models are profitable and Tesla wants to sell more. This is the opposite of the lower versions, which, in the case of the standard range, have been removed from the design studio. This seems like a discouragement to buy the less profitable versions.

Tesla has the right to make changes and, without a doubt, she should change them if necessary. We are only wondering if the $ 35,000 Tesla is possible or not. To date, we are landing at $ 39,500 (plus the unknown lower price of the Standard version outside of the design studio) two months before the federal tax credit decreases from $ 1,875 to $ 1,875 on July 1 2019.

Or maybe all this is totally wrong and Tesla redirects its customers to higher versions because the demand is huge, which is an opportunity to earn more and beat the previous goals?

EV price before change:

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