Will You Buy an Affordable Tesla After Six Successful Price Reductions?

 

Tesla, the company that has revolutionized
electric vehicle production and technology, recently dropped prices for its
latest $40K model to their lowest price ever. This news comes after Tesla
reducing their prices six times in just four months’ time! Could this be too
good to be true or is it really a bargain price? In this blog post we will take
an overview of the groundbreaking new model and explore if Tesla’s newest
electric car is worth such an amazing deal.

Tesla Model 3’s Price drops

Tesla’s line of vehicles includes the Model
3, a popular four-door sedan with rear-wheel drive. It holds the distinction of
being the least expensive model in Tesla’s lineup. According to Motor Intelligence
data, CNBC reveals that it currently ranks 13th in vehicle sales for 2022, with
an impressive count of 211,641 units sold.

Interestingly, Tesla decided to slash
$2,000 off the price tag of the Model 3. As a result, its base cost now stands
at $39,990. This reduction places it as a more reasonably-priced option among
electric vehicles (EVs). However, it must be noted that there are still hybrid
plug-ins and forthcoming 2023 EV models such as the Chevy Bolt EUV, Mazda MX-30
Hyundai Kona Electric and Kia Nero EV that have lower price points according to
Edmund’s rankings.

Nevertheless, what sets apart the Tesla Model
3 is its affordability when compared to typical new cars on the market.
Bloomberg previously reported in February that when priced at $42,990 back
then, it was already selling for $4,930 less than your average American-made
car purchase.

Tesla has recently made its sixth price
reduction on electric vehicles this year, with the second price cut happening
just this month. As reported by CNN, CEO Elon Musk emphasized that although
these reductions result in lower short-term profits, they are deemed necessary.

Musk explained, “Although we
significantly lowered prices in the beginning of Q1, it’s important to
acknowledge that our operating margin still remains one of the strongest in the
industry. Our strategy is focused on prioritizing higher volumes and a larger
fleet rather than settling for lower volume and higher margins.”

Price history of Tesla Model 3

When it comes to electric vehicles, Tesla’s
Model 3 stands tall. With its exceptional affordability, performance, and
range, it has captured the hearts of countless drivers seeking a switch from
traditional gasoline-powered cars. But how have the prices of Tesla’s Model 3
evolved through time?

Back in 2016, when the first version of the
Model 3 hit the market, customers could get their hands on one for just $35,000
USD. Remarkably cost-effective considering all the cutting-edge features:
robust batteries, advanced autopilot capabilities (even though fully
self-driving functionality was still in development). During its initial
release phase, color options were limited to black or white with only a handful
of available trims to choose from.

The Tesla Model 3 went through several
updates in 2017 and 2018. These updates included the addition of new interior
color options like silver or blue, as well as an increase in battery range for
longer travel on a single charge. Along with these improvements came a rise in
prices, reaching up to nearly $60K USD depending on customer choices such as
wheel sizes and paint jobs.

However, by 2019 Tesla had refined their
production process to the point where they could offer discounts on their
vehicles. They introduced sales events like “Cybertruck Day,” during
which customers who purchased a car online instead of visiting one of their
stores directly received valuable extras such as extended warranties. This
approach allowed them to lower base prices once again (though still higher than
original costs due to inflation), making electric vehicle ownership more
accessible than ever before for those interested!

Learn More: Tesla Model Y: The First EV to become the best seller car in the world

Is the $40K Tesla Model 3 a Good
Deal?

Lately, there has been a significant buzz
surrounding Tesla’s $40K Model 3. It seems to be an appealing option for those
seeking an affordable electric vehicle. However, is it truly as great of a deal
as it appears to be?

Let’s begin by discussing the impressive
range offered by the Model 3. With over 250 miles per charge and the added perk
of supercharging capabilities, you can hit the road without fretting about
running out of battery power. Additionally, this car boasts a well-designed
interior equipped with an abundance of tech features such as autopilot,
enhancing your safety and convenience while driving. Not to mention its sleek
exterior design that will undoubtedly grab attention as you glide through town!

Moreover, Tesla presents ample
customization options, allowing you to personalize your ride according to your
preferences. Such flexibility adds an extra layer of appeal to the Model 3, as
it ensures a bespoke vehicle experience with every purchase.

Nonetheless, despite these favorable
aspects, there are certain potential drawbacks that warrant consideration prior
to diving into purchasing this high-priced EV. Firstly, servicing expenses can
soar due to limited dealer networks in specific regions. Additionally,
occasional reliability issues have been reported in comparison to other brands
within its class which could result in unforeseen costs down the road should
repairs or maintenance become necessary. Furthermore, not everyone might find
the interior ergonomics comfortable owing to the compact space and close
proximity of various components. Lastly, while basic safety features are
included with the vehicle package itself; advanced driver-assist functions
require supplementary packages at an additional cost.

Learn More: Which is Better, the Audi e-tron GT or the Tesla Model S?

The Bottom Line

To sum up, the Tesla Model 3 is an
incredible deal for its price of $40K. Even after multiple price cuts, this car
manages to deliver exceptional performance, luxurious features, and
cost-effective operation—all wrapped up in a charming and efficient package.
It’s undoubtedly one of the top choices for consumers seeking an affordable
electric vehicle that offers some of the perks associated with owning a Tesla.