Price of two cheapest trims of Tesla Model 3 electric sedan increased by $500

Price of two cheapest trims of Tesla Model 3 electric sedan increased by $500

Palo Alto, California-headquartered Tesla Motors has once again announced a change in its pricing policy for the Model 3, increasing the price of the two cheapest trims of widely-popular electric sedan. Around a month after making multiple changes to the prices of the Model 3 and Model Y EVs, Tesla has again increased the price of the Model 3 electric sedan by $500 on the two cheapest options, viz. Tesla Model 3 Standard Range Plus and Tesla Model 3 Long Range AWD.

The price of the Model 3 Standard Range Plus has been increased from $37,490 to $37,990; while the price of the Model 3 Long Range AWD has been increased from $46,490 to $46,990. Fortunately, the price of the Tesla Model 3 Performance remained the same at $55,990.

Including last month’s price change, the cost of the Tesla Model 3 Standard Range Plus has jumped by $1,000. Finally, it has returned to the price at which it was selling before the price decrease in February this year.

It is also worth-mentioning here that Tesla updated the Model 3 electric sedan late last year by adding numerous features along with a slight design modification. In 2020, the Model 3 sedan was the company’s best-selling EV, but the recently launched Model Y is expected to snatch that status from it this year. Amid increasing demand for the Model Y, Tesla has expanded the production of the EV at Gigafactory Shanghai. The company’s mega factories in Berlin and Texas are also expected to start production of the new EV sooner than later.

Like other automakers, Tesla is not dependent on third-party franchise dealerships to distribute electric vehicles (EVs). While third-party franchise dealerships negotiate the final prices of vehicles with the end customers, Tesla has kept its entire distribution network under its control. The company sets prices of its vehicles in a manner that they remain the same for all buyers in each of the market where it operates.

Keeping the entire distribution network under its own control offers a big advantage to the American EV pioneer as it allows the EV maker to set prices according to its aspiration without the need to consult any third-party franchise dealerships. But, it often becomes problematic for customers as the company maintains full control over prices, and it frequently make changes in the prices of its products. Within the last couple of months, the company has changed prices of its EVs three times.

Business: 
General: 
Region: 
Companies: