Tesla has increased the price of the Model 3 Long Range (LR) in the US again on Tuesday night, marking the second price increase for the electric sedan in less than two weeks.
Tesla launched the brand new Model 3 in North America last month, with exactly the same pricing as the legacy Model 3, despite the numerous upgrades. Those prices didn’t stay the same for very long, at least for the LR variant, with the company raising the price last week by $1,000.
While the price of the Rear-Wheel Drive (RWD) continues to remain the same, Tesla has increased the price of LR again on Tuesday night, this time by $500, to now start at $47,490. (h/t: @SawyerMerritt) There have been no price changes to either of the Model 3 variants in Canada.
The likely reason for the price increases? Demand. Before Tesla increased the price by $1,000 last week, the estimated delivery window on the online configurator was between January and February, then afterwards between March and April. Now it is between April and May.
These prices increases are happening just as Tesla has been lowering prices on the Model Y. With this latest increase, the Model 3 LR is now only slightly cheaper than the Model Y LR, with the prices of the two vehicles just $500 apart.
However, when you consider the US federal tax credit of up to $7,500, which the Model 3 no longer qualifies for, the Model Y becomes considerably cheaper. But the deal gets even better if you add in existing inventory discounts, and if you qualify for the full tax credit, you can purchase a Model Y for up close to $10,000 less than the Model 3, something that has never happened before for the electric SUV.
Most recently Tesla lowered the price of the Model Y LR by $1,000 over the weekend, announcing it as a temporary price cut only valid until March 31, 2024, after which time it will increase by $1,000 or more.
