Tesla Model 3 Enters the US At $42,490 After Price Reductions

After recent price cuts, the Tesla Model 3 now starts at $42,490 in the US, making it a more affordable choice for electric vehicle fans.

The Tesla Model 3 has had a choppy experience over the past year. Initially, due to legal issues over regulations, the release of this EV had been banned in the United States. But Musk had been adamant and after much hassle, and federal tax credits, the Tesla Model 3 has entered the American market. Let’s take a look at what transpired to make this happen.

Tesla Model 3 Long Range RWD

Starting at the beginning, Tesla recently unveiled the Model 3 Long Range Rear-Wheel-Drive (RWD) and as usual, everyone in the automotive community is talking about it. Tagged at a competitive price of $42,490, this variant could be described as a combination of affordability and performance. The EPA range is a long 363 miles. In this way, the Model 3 Long Range RWD bridges the gap between the base model and the more advanced Long Range All-Wheel-Drive (AWD) option.

The USP of the Tesla Model 3 Long Range RWD is not only in its affordability but also in its performance metrics. It is capable of accelerating from 0 to 60 MPH in a brisk 4.9 seconds and boasts a top speed of 125 MPH. Whether you are an enthusiast or an everyday driver or both, this EV has something to offer any side of you. Also, it is a competitive alternative to the Hyundai Ioniq 6 LR, an EV lacking eligibility for federal EV tax credits.

As of late, EV battery prices have been declining so it is justified that the Tesla Model 3 comes at as low a price point as it does. Reports from Bloomberg state a significant drop in the cost of lithium-iron phosphate (LFP) cells in China. They plummeted over 51 percent to $53 per kWh within a year. Consequently, LFP battery packs now hover around $75 per kWh. Perhaps this heralds a new era where electric vehicles can rival or even undercut the prices of traditional combustion vehicles in China. As always, the Western markets strive to match China’s battery production capabilities. This resulting overcapacity could have global ripples beyond Chinese territory, effectively benefitting the entire world.

The Updated 2024 Tesla Model 3 Long Range RWD

The introduction of the Tesla Model 3 Long Range RWD is a part and parcel of a broader strategy. Tesla has been planning to refresh its lineup for some time now. Earlier this year, the company launched an updated version of the Model 3 in the US. This move turned heads in its direction throughout the industry. While this refreshed 2024 Model 3 was initially released in Europe, China, and the Middle East, it now rocks the roads of the United States, Canada, and Mexico as well. Let’s take a look at the various updates this EV sports.

Inside the 2024 Model 3, a new eight-inch rear display takes center stage by controlling infotainment and climate settings. The front display is still a 15-inch size but now features increased brightness and a slimmer bezel. Ventilated front seats are crafted from “softer, more sophisticated materials,” and provide a luxurious touch. There is also an optional 17-speaker audio system that takes the sound experience to a whole new level. The EV is fitted with acoustic glass. Thanks to that, most of the outside noise is canceled. Lastly, a rather insignificant detail in comparison to the rest, the interior is decked with customizable ambient lighting.

The exterior of the 2024 Model 3 also receives a stylish makeover. Tesla integrates fog lights and indicators into the main headlights, resulting in a more streamlined front fascia. The car’s aerodynamics got a facelift with a redesigned front bumper. This optimizes the airflow for maximum efficiency. At the rear, the lights now connect for the iconic Tesla look. Along with all this, new color options are also available. Ultra Red and Stealth Grey are two great options. Overall, the personalization index is way higher than before.

The refreshed Model 3 has two distinct variants. The base Real Wheel Model 3 with a range of 272 miles, and the Long Range Model 3 with a modest increase to 341 miles, which is a slight improvement over its predecessor’s 333 miles. But this increase in mileage is significant for another reason. This boost is reminiscent of Tesla’s efforts to honor its range estimates to the new US government regulations. Tesla’s past practices of inflating displayed ranges and managing customer complaints through a covert team now belong to history. Given Musk’s outspoken support of free speech, this move was long overdue.

2024 Tesla Model 3 Price and Availability

All that the 2024 Tesla Model 3 needs now are eager buyers. The deliveries are slated for January or February. As for the pricing, the Real Wheel Model 3 starts at $38,990, with leasing options available for $329 per month. If you want to step up on the performance and range, go for the Long Range Dual Motor All-Wheel Drive Model 3, which comes in at $45,990 or $439 per month for leasing.

Tesla also has had to grapple with fluctuating market dynamics in recent times. In response to this, the company enacted a series of price cuts on the Model 3 and Model Y, which was also an answer to dwindling deliveries. This is the second price reduction in just over a month and its aim is simple: to bolster sales and maintain market share.

The Model 3’s new starting price of $38,990 is down from the earlier $40,240. Similarly, the Model 3 Long Range now retails at $45,990, a drop from its previous $47,240 price point. Also, the Model 3 Performance is seeing a reduction to $50,990 from $53,240. The Model Y Performance SUV is not left alone and is now available at $52,490, down from $54,490.

These adjustments come after the significant price drops that were enforced recently. These included nearly 20 percent reductions on the Model S and Model X in September and substantial cuts in March that slashed Model X costs by up to $10,000. Tesla’s pricing strategy is a response to a consumer spending slowdown and intensifying EV competition. Another factor is factory upgrades that result in manufacturing downtime, also contributing to Tesla’s third-quarter slump. But the company remains resolute in its pursuit of volume and market share.

CEO Elon Musk’s willingness to prioritize production over profit margins is a show of determination to achieve the goal he has set for the company: of reaching 1.8 million vehicle deliveries in 2023.

The journey of Tesla over the previous year displays one trait above all else: its ability to adapt. It is because of this resilience that the company has been in the game for so long, and leading the pack. Elon Musk is committed to providing quality vehicles for as little price as possible. The price cuts reveal just this. Let’s look out for what the rest of the year holds for Tesla.