Tesla has just updated the price of the Model 3 and Model Y in the US. The price of a Model 3 Standard Range Plus now starts at US$35,490, including $2,000 of incentives.
Landing the price with a 35 at the start of it, is an important milestone. When Elon Musk unveiled the Model 3 back in April 2016, he revealed the price would start at US$35,000. Famously it took a couple of years of production to finally make a car for that price, a spec that was retired shortly after.
The price arriving back to this US$35k low is now due to efficiencies found in production and battery technology, along with a couple of nice incentives from the state and federal agencies. As we know, Tesla produced more than 450,000 Model 3 and Model Y in 2020 alone, so a price drop will surely help stimulate even further demand.
It’s also worth noting the announcement this week of the 2022 Chevy Bolt EV, an update to their small car that starts at $31,995. At a premium of just US$3,495 it’d be a hard case to make that someone should opt for the Bolt over the Model 3, particularly when you have Autopilot and the option to get FSD.
If we look closer to home, the Australian prices remain unchanged which now highlights a massive discrepancy. Australians are now paying more than double the price to driveaway.
In Australia (pricing based on VIC), the vehicle costs A$68,425 inc GST. Once we add the local taxes, the driveaway price of that same car, is A$72,262.
Some of the difference can be accounted for by the exchange rate (0.78), but not all of it. If we take the US price and translate it to AUD, we arrive at a price of A$45,772.27. At that price, sales of the Model 3 (and therefore electric cars) would explode. There’s simple many more buyers at that price bracket, than there is at A$70k+.
As for the Model Y, Australia is still waiting for the RHD order page to go live, while American’s can be in the car for US$38,490.