this new price increase will significantly reduce orders

Tesla continues to drastically increase the price of its Model 3. In question, the economic crisis and shortages, which complicate supplies.

The prices of the Tesla Model 3 keep going up. At the beginning of March, the sedan was still displayed at 43,800 euros in base price, or 37,800 € after bonus.

At the beginning of the month, its price had risen to 44,990 euros, just below the limit to benefit from the ecological bonus of 6,000 euros. Last week, the Model 3 said goodbye to the maximum bonus by crossing this fateful bar. It thus went to an access price of 46,990 euros before application of government aid.

Today, another thunderclap! On the manufacturer’s online configurator, the Model 3 is now displayed at 49,990 euros before the bonus is applied. For the customer and taking into account the bonus variations linked to these successive price changes, this represents an increase of 11,190 euros in two weeks precisely for a version without option deliverable in February 2023 (the bonus should increase from 2000 to 1000 euros ).

Not surprisingly, the prices of the other two versions have also been revised upwards. The Model 3 Grande Autonomie is now displayed at 58,990 €, and the Model 3 Performance at 62,990 euros. This represents an increase of 3,000 euros for both finishes.

This increase of 3,000 euros also affects the Tesla Model Y. In its Long Autonomy version, its access price goes from 59,990 € to 62,990 euros. An increase which actually amounts to €5,000 since the SUV loses the ecological bonus of €2,000.

An impact on Tesla… but also on the market

Concretely, this new price increase drastically reduces the relevance of the Model 3 on the electric car market. A phenomenon that will clearly benefit the competition. We are obviously thinking of the all-new electric Renault Megane, which is arriving on the market and will be positioned advantageously. The top of the range of the French compact, with 60 kWh battery and 220 kW motor, is priced at 47,400 euros. The entry-level with the 60 kWh battery is positioned at 40,200 euros, excluding bonuses.

The other question to ask is whether Tesla still wants to sell its cars in the current context. Indeed, the war in Ukraine and the sanctions against Russia are causing an explosion in the price of nickel. If we add this to the other current shortages, and to a delicate economic context, Tesla has no interest in filling an already well-stocked order book.

The manufacturer certainly wants to focus on honoring current orders, and continuing to enjoy a decent margin on the model. Two objectives that the crisis does not help to achieve, between the rise in the price of raw materials and the difficulties of supply.

Other manufacturers manage to pass on this context less to their prices, in particular through the overall volume of their ranges. Tesla, for its part, must take these difficulties a little more directly.

It is therefore likely that this huge increase in two weeks is the main cause. Because even if it means selling Model 3s to customers wishing to buy it without delay, the brand will prefer to direct it towards the more luxurious versions.

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