For the most part, new electric cars are expensive, so any savings are wonderful. First reported by driveteslacanada, Tesla is cutting thousands of dollars off the list prices of in-stock Model 3 sedans. Tempting, right? If you have a keen eye and do some digging, you could score a bit of a bargain. However, as you might expect, there are a couple catches here.
Firstly, Tesla is only discounting Model 3 units currently in inventory. If you wish to place a custom order, you’ll be out of luck on the savings. Likewise, inventory is limited, so once these cars are gone, the deals are likely gone too. If you’re looking for them on the Tesla website, you’ll have to click on the inventory tile, not the individual model tile, for specific discounted cars won’t show up on the configurator.
The second catch is that discounts can vary wildly depending on trim and even each individual vehicle, so let’s start with the base rear-wheel-drive trim. A cursory look of examples available in the Los Angeles area shows discounts as high as $3,460 and as low as, well, nothing. If you’re diligent, you can score a base Model 3 for just north of $38,000, and the federal $7,500 tax rebate knocks that under $31,000. Even as someone who isn’t particularly fond of the Model 3’s materials, ride quality, and infotainment, I must say that’s a hell of a bargain for something built for North America’s most reliable coast-to-coast charging network.
As you might expect, stepping up to the Long Range Dual Motor model ratchets up both the price tag and the discounts over the base trim. On this model, price cuts north of $5,000 seem fairly routine, dropping MSRP down to the mid-40s. That’s a big price jump over the base Model 3, but it still represents solid savings. Likewise, in-stock top-dog Model 3 Performance models also see discounts north of $5,000, such as the $5,320 discount on this Midnight Silver Metallic example.
Oh, and don’t think I’ve forgotten about my neighbors in the Great White North. Looking around Toronto, I’m seeing less than $3000 Canadian off the sticker prices of in-stock base models and varying discounts of between nothing and $6,760 Canadian on dual-motor models. These aren’t the best discounts considering how Canadian Model 3s carry a four-figure premium over American models, but every bit helps.
So why would Tesla discount models in inventory? Why, for the same reasons a traditional dealership model discounts on-the-lot models, of course. Sure, Tesla cut out the middleman, but this is still retail we’re talking about. Aged units are expensive to keep around, so those will often be discounted first. However, the reason everyone’s hoping the discounts exist for is Project Highland. Yes, more than six years into production, the Model 3 is allegedly getting a facelift. It’s about damn time, right?
(Photo credits: Tesla)
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“So why would Tesla discount models in inventory?”
Seems like ordinary business procedure to me.
Interest rates are way up and sales are down (for everybody).
Lower prices to maintain sales.
The model is -old- lower prices to maintain sales.
Newcompetitors have entered your market niche. Increase their barrier to entry by undercutting them on price.
Reduce aging inventory by lowering prices.
Your development costs are long since paid off so your profit margin can be reduced per vehicle while making it up in volume.
You force the customer to make pragmatic choices: Choose a known well-established brand with known reliability and a good charging infrastructure or a new, more expensive model from a “new”(at EV’s) EV maker with a lot of unknowns including resale value? Reinforce the decision to “choose safely” by offering a financial incentive.
My sister-in-law and her husband just scooped up one of these Model 3s two weeks ago. With their Federal and Provincial rebates plus the discount on a “floor model” they saved about $12000 CDN.
Most Autopian readers are particularly delighted when an article’s picture shows both a Tesla and a picture of Elon.
It would be surprising if this wasn’t Project-Highland-motivated.
$31,000 is just $3k short of the average car price early this year. Get $20k for a deal.
Model Y is also discounted similarly. $5k or so off base-ish Y’s with 7 seat interior and tow hitch. It’s 6 hours away. A Y in the mid 40’s after rebates is something I’d travel for.
Getting a brand new Model 3 for $31k is a heck of a deal when a pre-battery update Bolt with 25k on the clock will cost $20k. Unfortunately, I live in one of the more expensive areas of the country, and my cost of living adjusted wage puts me above the federal tax credit threshold. I’ve said it at various times on this site, but the fact that the tax credits don’t scale for cost of living is just silly
If the goals were to both electrify as many vehicles as quickly as possible and to boost US manufacturing, it’s not clear to me why there were income limits at all.
Yeah, the >$300,000 income crowd isn’t the most sympathetic, but they make up a greatly disproportionate number of new car buyers.
I largely agree. The used car market is one of the few areas where something akin to the trickle down effect is unquestionably real, and if the motivation behind a lot of these tax credits is to get a market going for “Green” goods, wealthy people spend way more than the masses. The problem is that the removal of an income cap would ensure that the credit was used quite a bit, which would result in increased taxes, particularly for groups that have avoided such taxes for a hot minute, and that would not be politically possible in this country
There are other ways to do this other than giving handouts to rich people.
Are those mysterious ways politically feasible? Do they cost less than simply extending the credits? Are they more effective in meeting the stated goals?
Too much of politics is vindictive or rooted in a misguided desire for fairness and equity (Eat the rich!). The cost is high income people like the OP not buying EVs who might do so otherwise. Is the satisfaction of not giving him a “handout” worth it? I worry that too many people would say yes.
It’s why I don’t much care for the shrill bleatings of climate alarmists. If the emergency is existential, we should be doing literally everything in our power to decarbonize immediately, not arguing about phase out limits on tax credits. The fact that the latter seems preferred is why I can’t take these people seriously.
What are the goals? That’s where things are different. I don’t think the goal of the proliferation of EVs is particularly environmentally focused even though that’s what they are telling us. IMO It’s to sell more cars at higher price tags. At least if you believe in regulatory capture (I do).
I’m personally not being vindictive. I just believe it’s simply not right to stand up capitalistic endeavors through subsidy of luxury goods. If the government wants to proliferate EVs, we don’t even have the charging infrastructure nor the electrical capacity; so why are we subsidizing the vehicles we can’t support? This is a classic corporate America play (because of aforementioned regulatory capture). Make a ridiculous goal, start with the solution that makes people the most money, and then realize what the real problem is, and go backwards.
I agree. If we really cared about the environment, we shouldn’t use more consumption to try fix an overconsumption problem. Nor should we place the onus of that on millions/billions of individuals; talk about a ship that’s impossible to right.
I feel like the actual climate alarmists are saying exactly that. The ones arguing about tax credits just see the climate crisis as a political tool.
I see it as the opposite, the loudest climate voices are often the ones screaming about degrowth, socialist revolution, and the like. The actual warming is just an excuse to overthrow the system.
Goals like abundant, cheap, clean energy in a capitalist economy don’t appeal to them because it doesn’t allow them to remake the world in their preferred image.
Being loud doesn’t make them actual climate alarmists. It sounds like you’re exactly describing people who see climate as a means to a political end.
Right, and it’s people like that who would rather make sure rich people don’t get a benefit than take another gas guzzler off the road.
If equity is more important than climate in those peoples’ political outlook, that’s fine, but don’t expect me to believe them anymore when they say climate change is *the* most important issue of our time.
Per Oxfam: The richest one percent of the world’s population are responsible for more than twice as much carbon pollution as the 3.1 billion people who made up the poorest half of humanity during a critical 25-year period of unprecedented emissions growth.
So… Since the rich have contributed disproportionately to the problem… forgive me if I resent having my tax dollars going towards subsidizing their EV – that they can already afford far better than I can.
I mean, that’s a legitimate and likely widely shared opinion, but again, is the goal to reduce emissions as fast as possible or to feel good about sticking it to rich people?
Also, if you make a middle-class income in the US, you’re probably top 1% globally, so your stat is not really about millionaires…
It’s a fair question. Of course, the overall goal is emissions reduction. But it’s a messy problem right now… given the environmental mess battery production is causing.
But beyond that… at a certain income level, I doubt EVs really lessen the carbon footprint of the people in question. I suspect the EV will be the 3rd or 4th (or 5th…) car for those families. At that point… that car represents resources best left in the ground.
So I’m going to stick with supporting income and MSRP caps… and advocate sending a finite amount of money to where it will do the most good.
I feel like there’s an obvious point here that you’re missing completely, and it has to do with the funding of these tax credits in the first place
That could be many things; what do you mean specifically? I can guess, but that’s silly.
Well they are planning on turning it into a POS rebate instead of a tax credit which will help people on both ends of the scale, those that make too much in part because of where they live, but also those who make too little to qualifiy for the full amount of the credit because they live where the cost of living is very low.
Got a link? Sounds neat
It appears that they have walked back a little bit from the initial claims and the final rules have yet to be written, but look under credit flexibility.
https://www.nerdwallet.com/article/taxes/ev-tax-credit-electric-vehicle-tax-credit
I do think they will have to give up on the income/minimum tax liability requirements as I have serious doubts they figure out an acceptable way to prove to the dealer that you will indeed qualify for the full amount, particularly at the beginning of the year.
I may be mistaken, but doesn’t the Federal tax credit thing become a discount-at-point-of-sale thing as of Jan. 1, 2024? I don’t know whether it’s a true discount off the price of the car, or a sort of advance against a tax credit you still have to apply/be approved for later, but I think there is a change like this starting after the new year as a part of the Inflation Reduction Act.
Perhaps someone more informed than I could clarify?
I haven’t seen anything, but that would be nice. Hopefully it coincides with the market going back to sanity, and it isn’t countered by dealer markups/Tesla raising prices again
I don’t imagine the market will return to pre-pandemic price levels anytime soon. I like sanity, but I don’t expect it. 😉
I’ve been seeing price cuts all summer on in-stock M3P’s of up to $5,700. When you start factoring the $7,500 IRA incentive, it’s an extremely compelling sports sedan choice.
I took delivery of mine 3 weeks ago. Best car decision I’ve made in years.
(Keep in mind, those bigger discount offerings are sporadic so you have to jump on them quickly as those units tend to sell within a day or two.)
My shop is right behind the Fremont factory and I’ve been seeing Model 3 cars with the front and rear covered running around for a couple of weeks now. I think they’re coming and they don’t want any of the old stuff sitting around.
Is it still a facelift when the car has no face?
For some reason I now have Billy Idol’s “Eyes Without a Face” song stuck in my head.
You say that like it’s a bad thing! That songs rips, probably my favorite of his
great deals if you can afford em
Just stop being poor!
I outlined my revolutionary affordability strategy a few days ago here. It’s even sort of endorsed by someone who is apparently considered a financial expert. 😉
Well cutting back on expensive avo-car-do toast is still a financially sound idea…