Tesla Model 3 Price Increase History: It Keeps Going Up

Tesla cites inflation as the reason for the rapid price increase of the Model 3 and other vehicles. We look at the Tesla Model 3 price increase history.
Written by Alexandra Maloney
Reviewed by Kathleen Flear
Jun 12, 2022
As
Tesla
has revealed its prices for the 2022 models in its fleets, it’s evident that the car brand is moving farther and farther away from having any affordable, electric vehicles available to drivers at all. While
Tesla has increased prices across the board
over the last few years, one car has seen a particularly large jump—the Tesla Model 3. 
Today, the Tesla Model 3 costs close to a third more than it did a year ago, and trends point to the price only continuing to increase.
Jerry
, the
car ownership super app
, looks at the Tesla Model 3 price increase history—and what’s causing these drastic price increases in the Model 3 and other Tesla vehicles. 

How much does the Tesla Model 3 cost?

Prices of the Tesla Model 3 range from about $47,000 to around $62,000, depending on the trim. According to
Torque News
, the base Standard Range Model 3 has seen the biggest price increase over the past year. In March 2021, the vehicle was sold for $38,490, but in March 2022, price increased by 22% to $46,990. 
The mid-level trim, the Long Range Model 3, saw a 15% price increase in the same time frame, from $47,490 to $54,490. The Model 3 that had the smallest price increase was the Model 3 Performance at 9% increase, from $56,990 to $61,990.
According to
Car and Driver
, the Model 3 was promised to be Tesla’s breakthrough into more affordable territory to make electric vehicles more accessible to all drivers. But, these price increases are steering the car brand far away from its initial mission.

Tesla Model 3 price increase history: Cause

CBS News
reports that Tesla CEO Elon Musk tweeted the company is seeing significant recent inflation pressure in raw materials and logistics, which hints at the cause of the rapid price increases for Tesla vehicles.
Electrek
echoes the sentiment, reporting that Tesla blamed increases in prices on supply chain issues and overall problems with the economy following the coronavirus pandemic. 
But, not all electric vehicles have seen price increases. In fact, according to
Green Car Reports
, Chevrolet has cut the price of their electric vehicle, Bolt, and Nissan has cut the price of their electric car, Leaf, in the past year. It’s also important to note, Tesla’s gross margins have increased between this year and last. 

The Model 3 isn’t the only Tesla vehicle seeing increases

Over the past year, Tesla has increased prices of all vehicles to some extent. Torque News reports that over the last year, the base trim of the
Tesla Model Y
has increased 25%, from $50,490 to $62,990. Additionally, the Model X Long Range has now broken into costs in the six figures, with a price increase from $89,990 to $114,990. 
On top of the price increases, Tesla models will now take longer to receive after purchasing. The fastest a Tesla can get to you is 4-10 weeks for the Model S Plaid. Other models, like the Tesla Model X, likely won’t arrive until 2023.
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National General
Allstate
AAA
Aig
Chubb
ClearCover
CSE
Dairyland
DirectAuto
Elephant Auto Insurance
Kemper
Libertymutual
Gainsco
Mapfre
Mercury Auto
Metromile
Nationwide
Plymouth Rock
Progressive
State Auto
Safeco
Travelers
Metlife
Bristol West

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