Tesla increases Model 3 price, now cost as much as Model Y

Tesla has increased the price of the refreshed Model 3 Long Range in the US. It now pretty much costs the same as Model Y, if not cheaper in some cases.

After launching the Model 3 refresh in Europe and Asia last summer, Tesla finally brought the new vehicle to North America last month.

As of now, the automaker only produces a base Model 3 Rear-Wheel-Drive Standard Range and a Model 3 All-Wheel-Drive Long Range. The Performance has been removed since the design refresh.

Today, Tesla increased the price of the Model 3 Long Range:

It now starts at $47,490 – $1,500 more than it was when the vehicle launched in the US last month.

The base Model 3 RWD is still the same price at $38,990. Those prices are before potential incentives.

Interestingly, the Model 3 Long Range is now roughly the same price as the Model Y Long Range, which is $47,990.

Historically, the Model Y has been several thousand dollars more expensive than the Model 3. In fact, that’s still the case for the base versions of each vehicle as the Model Y RWD starts at $42,990 – $4,000 more than the Model 3 RWD.

Tesla is also offering extra discounts on inventory Model Y vehicles in the US – making the Model Y often cheaper than the smaller Model 3.

Electrek’s Take

This is interesting. We have seen something similar happen with Model S and Model X over the years.

Tesla adjusts prices based on demand versus production capacity and right now, it can produce a ton of Model Y, while it is a bit more limited when it comes to Model 3.

It looks like it is enabling this price increase, but it’s important to look beyond the new orders as Tesla has made it a new habit over the last year or so to start offering discounts on new inventory vehicles.

You can find some good deals right now on Model Y Long Range where it can be as much as $5,000 cheaper than a brand new Model 3 with Long Range battery pack. It’s wild.