There was a time, not too long ago, when a Tesla was seen as a bit of a luxury purchase. There was the very niche first-generation Tesla Roadster, followed by the groundbreaking Model S sedan and the Model X SUV. Even the Tesla Model 3, which debuted in 2016, would take years to deliver on its promise of mass-market affordability.
Today, in its updated and refreshed Highland form, the Tesla Model 3 sedan remains the cheapest model that the company sells, undercutting the price of the Model Y crossover
by roughly $2,500. Tesla is known for adjusting its prices frequently, so all these specific figures are subject to change, but at the moment, the base Model 3 is the long-range, single-motor variant priced at $44,130 after destination and delivery fees.
After factoring in the available $7,500 EV tax credit (which will end soon), Tesla advertises the effective price of the Model 3 to be $34,990 (before a $1,390 destination fee). Fittingly, this "$35,000" price point was a huge part of the Model 3's promise when the car was first unveiled. But this so-called $35,000 Tesla is a much more capable car than it once was.
Read more: 9 Cheap Cars That Look Expensive
The Current Base-Level Model 3 Is A Big Upgrade Over Its Predecessor
For most of the model's lifespan, the RWD Standard Range Model 3 was the cheapest way to get a Tesla. In 2019, when the base Model 3 joined the lineup, it had a driving range of just 220 miles and a claimed 0-60 time of 5.6 seconds. In 2024, not long after the updated Highland version arrived, Tesla switched up the Model 3 hierarchy in America, dropping the standard-range version from the lineup and lowering the price for the large-battery version to make up for it.
As the current base-level model, the Long Range RWD Model 3 has an EPA-estimated range of 363 miles, and Tesla says it will do 0 to 60 mph in 4.9 seconds. That's a massive increase in range and performance. Throw in all the other improvements on the 2025 Model 3 compared to the early cars, and there's a lot of bang for the buck there.
While the Model 3 currently qualifies for the $7,500 federal rebate, that incentive will be going away at the end of September 2025. This won't just affect Tesla, though, as the Model 3 is but one of many currently eligible electric vehicles that will no longer benefit from the tax credit in the fall of 2025. There may be additional price cuts to help compensate for the loss of the tax credits, but you'll want to buy a Model 3 soon if you want to take advantage of the incentive,
Is A New, Cheaper Tesla Model Coming?
All things considered, even if you remove the tax credit, Tesla has done a commendable job in keeping the Model 3 affordable in a period where car prices have increased across the board. But there have long been rumors of a new, even cheaper Tesla model that would slot below the Model 3 in the lineup.
Speculation was that this new vehicle, likely called Model 2, would be a smaller city car. But in the spring of 2024, it was reported that the new, low-cost Tesla model had been scrapped. Recently, though, Elon Musk has revealed (via Motor Trend) that there is a more affordable Tesla on the way, but it won't be a new model. Instead, it seems the plan is to sell a version of the existing Model Y with scaled-back features and a smaller battery, creating a more affordable version of Tesla's popular crossover.
If the rumors are true, this less expensive Model Y could be coming as soon as this year. So if you are okay with less driving range and fewer creature comforts, there may be a new Tesla value king on the horizon.
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Read the original article on SlashGear.
