The Base Tesla Model 3 Is Now Even Cheaper

Chris Teague
by Chris Teague

For a while, it seemed like Tesla's values would never come back  to Earth. Buyers lucky enough to get a new EV from the automaker were flipping their cars for way more than the asking price, and many people overpaid as a result. Tesla started cutting prices earlier this year, making all models more attainable, and now the company has slashed the price of an entry-level Model 3 to below $40,000.

The rear-drive Model 3 now costs around $39,000 to start, a significant drop from the high prices in the last two years. That number becomes even more appealing after government tax credits, which cut another $3,750 off the price, making the Model 3 a compelling EV. 

Price cuts have made the Model 3 more affordable for leasing, too, as the car is now around $384 per month. That’s far from cheap, but consider that many EVs are twice that much or more each month, and the Tesla becomes far more appealing.

Tesla is enjoying the benefits of scaling its production efforts, which have made building new EVs much cheaper and faster for the company. We expect to see a new Model 3 in the coming months, and the automaker has long promised that we’d see the Cybertruck in late 2023, so this year is shaping up to be a busy one for Tesla.

[Image: Tesla]

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Chris Teague
Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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8 of 87 comments
  • Allan C Corbin Allan C Corbin on May 24, 2023

    The basic engineering is good, but the car is not a really premium car. It was benefitting from little competition and governments incentives. Some of the weaknesses of the Model 3 were exposed with the introduction of the Model Y, which outsells it despite higher prices. It is still overpriced despite price reductions. It's more of a $20,000 car. I expect it's market share will significantly start to decline as real competition arrives especially the Chinese EVs in the world markets. Where I live the Chinese EVs outsells the Tesla's like 10 to 1. An MG4 sell for half the price of a Model 3.

    • See 1 previous
    • EBFlex EBFlex on May 24, 2023

      “It's more of a $20,000 car.”

      Correct. Build quality is very poor, everything is run through a computer, it’s all wires and a screen. It’s still grossly overpriced.

  • Kcflyer Kcflyer on May 24, 2023

    I've only experienced the model 3 as an uber passenger. Looks and feels like an 20 thousand dollar honda from ten years ago

    • See 1 previous
    • Festiva Rob Festiva Rob on May 25, 2023

      Good. Means it's a scam.

  • Festiva Rob Festiva Rob on May 25, 2023

    Tesla is not a car, it's a MG42 that will SHOOT YOU IN THE BACK!!! The Lamborghini Sian FPK is safer than a Tesla Model X. I HAD A Tesla Model X before it drove me INTO A LAMPOST!!!

  • ToolGuy ToolGuy on May 25, 2023

    Ford Motor Company will crush Tesla like a bug.

    • Stuart de Baker Stuart de Baker on May 26, 2023

      I'm conflicted. I loathe Musk. And I find most of the Teslas to be seriously ugly. I drove a Model S about a decade ago and found it to lack character. I was VERY happy to get back into my Civic (stick), a now 15 year old car which I still love. But I do like having a third American car company (what used to be Chrysler now being what, Dutch--now that its headquarters is in the Netherlands?)