In a recent development, Tesla has made a slight adjustment to the price of its upgraded Model 3 Long Range Dual Motor All Wheel Drive (AWD) just weeks after its North American release. The vehicle, previously priced at $45,990 before options, now starts at $46,990.
The Model 3 LR AWD is part of Tesla’s current offerings, which also include the Rear Wheel Drive (RWD) variant priced at $38,990 before options. While the specific reason for the price increase has not been officially disclosed by Tesla, it coincides with a shift in the estimated delivery date for the LR AWD model to March-April 2024, as opposed to the February-March 2024 timeframe for the RWD version.
Speculation arises that the minor price adjustment may be a strategic response to robust demand for the mid-tier Model 3. Launched just last month in North America, the Model 3 LR AWD is gaining attention for its attractive combination of features, performance, and safety at its price point.
It’s worth noting that the Model 3 and Model Y are pivotal to Tesla’s global sales, with the Model Y surpassing the Model 3 in sales over time. However, the Model 3 continues to hold significance, possibly due to its status as an entry-level Tesla and its position as the most budget-friendly option in the company’s lineup.
An interesting consideration is the impact of federal tax credits in the United States. The Model Y remains eligible for the Inflation Reduction Act’s (IRA) $7,500 federal tax credit. This means that the Model Y RWD, starting at $43,990 before options, and the Model Y LR AWD, starting at $48,990, can effectively be acquired for $36,490 and $41,490, respectively. This dynamic raises the possibility that, with the federal tax credit in play, the Model Y could be a more economically attractive option than the Model 3 in the United States.
