The Tesla Model 3 is an amazing car, but the biggest criticism is how expensive the car is, putting it out of reach of many Australians. Like most countries, we have a number of on-road costs that add to the overall cost, however we do something really crazy and add a luxury car tax to EVs.
The single biggest cost component of an EV right now is the battery. This means that people who buy an EV, aren’t necessarily choosing to buy a car in the premium price tier, that is just where it ends up right now.
The Model 3 was famously announced as the US$35,000 car, but more commonly the car lands around US$40,000. By the time that arrives in your driveway in Australia, you’ll be missing more than $100,000 from your wallet.
Brisbane owner, EV-HQ asked Elon Musk about the price..
Musk replied “This does seem high”. Could this suggest we’ll get a revised pricing structure down under?
The exact spec in question, the Dual-Motor AWD Long Range in Red actually has a driveaway price of US$50,990. Despite that, our price should still not be double the US. At the time of writing, US$50,990 converts to A$75,753.96, then add 10% GST and you’re at $83,329.356.
This price is also relevant to the upcoming Model Y launch, as the price of the mid-sized SUV is set to be a little more expensive than the Model 3.
Given most people in the mid-sized SUV market are used to paying around A$50K, it’s a massive ask to more than double their budget, in order to save the planet.
A price adjustment for Australia, could help increase EV sales here. While sales of electric vehicles are on the rise, they still account for a small number of overall sales in the country.
The Government could also help accelerate the transition to electric vehicles by removing Luxury Car Tax.