Tesla Model 3 Price Increase History: It Keeps Going Up

In the last year, the Model 3 has increased in price between 9 and 22% depending on the trim—supposedly caused by inflation and the cost of raw materials.
Written by Alexandra Maloney
Reviewed by Kathleen Flear
Tesla
Model 3 prices are going up every year, with one trim level costing almost a third more than it did previously. 
  • Today, the Tesla Model 3 costs almost a third more than it did a year ago.
  • The base trim increased the most and the Performance trim increased the least.
  • Supply chain issues, inflation, and the cost of raw materials are factors.
  • Other electric vehicle manufacturers have seen a price drop in recent years.

How much does the Tesla Model 3 cost?

Current starting price range: $47,00 to $62,000
Prices of the
Tesla
Model 3 depend on the versions of the model—and the
prices are going up
all the time. According to
Torque News
, the base Standard Range Model 3 has seen the biggest price increase over the past year out of all Teslas.
Price history
  • Base trim: 22%. In March 2021, the vehicle was sold for $38,490, but in March 2022, the price increased by 22% to $46,990. 
  • Mid-level trim: 15%. The Long Range Model 3 saw a 15% price increase from $47,490 to $54,490. 
  • Top-level trim: 9%. The Model 3 Performance had the smallest price increase, from $56,990 to $61,990.
Remember that you also have to pay for home chargers to complement your visits to the Supercharger. It’s also worth considering if you want FSD (Full self-driving mode) which comes at an extra cost if your model has the hardware for it.
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. However, these price increases are steering the car brand far away from its initial mission.

Causes of the Tesla Model 3 price increase

Cost of raw materials:
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. 
Supply chain issues:
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. 
Corporate profits: Tesla’s gross margins have increased between this year and last. 
Despite this, not all electric vehicles have seen price increases. In fact, according to
Green Car Reports
, Chevrolet has cut the price of its electric vehicle (Bolt) and Nissan has cut the price of its electric car (Leaf) in the past year. 

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

Cost increases: Over the past year, Tesla has increased the prices of all vehicles to some extent. 
  • Tesla Model Y
    prices (base trim) have increased 25%, from $50,490 to $62,990. 
  • Tesla Model X Long Range has increased from $89,990 to $114,990. 
Delivery increases: 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.
Of course, there are
incentives and tax credits
for electric vehicles that could counteract the price changes. If the Tesla price is too high for you, perhaps a federal tax credit could take the edge off the price hikes.
Ultimately, don’t hold your breath. Any price changes from the automaker will probably not be Tesla price cuts. If your heart is set on a Tesla Model X Plaid or a Model Y Long Range, the best way to get a good deal is to choose a cheaper base model and avoid unnecessary upgrades. And even though the MSRP is high, the entry-level model still qualifies for tax credits.
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