The Tesla Model 3 is one of the most popular electric vehicles on the market today. As Tesla’s most affordable model, the Model 3 has helped make electric vehicles more accessible to the average consumer. With its sleek design, impressive performance specs, and relatively affordable price point, it’s no wonder the Model 3 is in high demand. But how much does a Tesla Model 3 actually cost? The price can vary quite a bit depending on the specific trim, features, and options you choose. This article will provide a comprehensive overview of Tesla Model 3 pricing, including the base price, cost of upgrades, incentives and tax credits, and more. We’ll also compare it to other Tesla models and look at how the price has changed over time. Read on for the complete rundown on Tesla Model 3 pricing.
Base Price
The most basic Tesla Model 3 is the Standard Range Plus trim. This rear-wheel drive model has an EPA estimated range of 272 miles on a full charge. The Standard Range Plus starts at an MSRP of $46,990 before any incentives or options. That makes it Tesla’s most affordable model by a significant margin. For comparison, the larger Model S sedan starts at $104,990 while the Model X SUV starts at $120,990. The Standard Range Plus comes decently equipped even in its base configuration. Highlights include:
- 272 mile range
- Rear-wheel drive
- Top speed of 140 mph
- 0-60 mph in 5.3 seconds
- 15″ touchscreen display
- Autopilot advanced driver assistance system
- Premium interior materials
- Immersive audio system
- Standard GPS navigation
So while the Standard Range Plus trim is Tesla’s lowest cost model, it still comes with the tech-focused features and performance that Tesla is known for even in its most basic configuration. The sub-$50,000 starting price makes the Model 3 much more attainable for the average new car buyer than Tesla’s six-figure luxury models.
Upgrade Options
If you want more than the standard features, Tesla offers several ways to upgrade a Model 3. These upgrades will increase the total MSRP but also add more range, performance, and features.
Long Range
The Long Range trim level increases the maximum range to 358 miles, adds more power and faster acceleration, and starts at $54,990. That’s an $8,000 upgrade over the Standard Range Plus. Highlights of the Long Range upgrades:
- 358 mile maximum range (vs 272 miles for Standard Range Plus)
- Dual motor all-wheel drive (vs rear-wheel drive)
- Top speed of 145 mph (vs 140 mph)
- 0-60 mph in 4.2 seconds (vs 5.3 seconds)
So for $8,000 more, you get nearly 100 extra miles of range and improved acceleration. This makes the Long Range a great pick if you want max range or need the confidence of all-wheel drive.
Performance
The top-tier Model 3 is the Performance trim, starting at $62,990. For maximum speed and acceleration, the Performance upgrades over the Long Range include:
- Top speed raised to 162 mph
- 0-60 mph in just 3.1 seconds
- Lowered suspension and performance brakes and wheels
- Aluminum alloy pedals
You sacrifice a little bit of range, down to 315 miles, but gain incredible power and handling. The Performance trim shaves nearly a full second off 0-60 mph acceleration for a thrilling ride.
Self-Driving Capability
Tesla also offers “Full Self-Driving Capability” for $12,000 on any Model 3 trim. This adds Tesla’s most advanced driver assistance and semi-autonomous features, including:
- Navigate on Autopilot for automatic driving from highway on-ramp to off-ramp
- Auto Lane Change to automatically change lanes
- Autopark to automatically parallel or perpendicular park
- Summon to park and retrieve your parked car remotely using the mobile app
- Smart Summon to drive to your location in parking lots using the mobile app
- Traffic and Stop Sign Control (Beta) for stopping at traffic lights and stop signs
While “Full Self-Driving” requires you to remain engaged and ready to take over at any time, it offers the most advanced autonomous features available today.
Other Options
Some other popular options for the Model 3 include:
- Tow hitch – $1,000
- Red multi-coat paint – $2,500
- White interior – $1,000
- 9 speaker immersive audio – $1,500
- Full self-driving capability – $12,000
- Enhanced Autopilot – $6,000
Adding towing, premium paint colors, upgraded interiors, and advanced driver assistance can quickly increase the final MSRP. But these options allow you to customize your Model 3 to your exact preferences.
Incentives and Tax Credits
In addition to the base MSRP and upgrades, there are some incentives and tax credits that can help lower the final price you pay for a Tesla Model 3.
The major incentive is the federal tax credit of $7,500 for eligible electric vehicles. This applies to any new Tesla purchased in the US. You have to owe at least $7,500 in federal taxes for the year you purchase the vehicle to receive the full credit. Many states and even some utility companies also offer additional electric vehicle incentives, typically from $500 to $2,000.
When you combine the potential $7,500 federal tax credit with other state/local perks, you can save a significant chunk off the sticker price. The incentives make Teslas more affordable. Just note that the tax credits do come after you file your taxes for the year.
Changes Over Time
One important thing to note is that Tesla Model 3 pricing has dropped over time as production capacity increased. When it first went on sale, the Standard Range Plus started at $39,900 while the Long Range started at $49,900. The base price has increased slightly since then, but is still much more affordable than early Model 3 prices.
Tesla has also simplified the Model 3 lineup over time. Initially there were several battery pack options starting under $40,000. But today there are just the two battery/motor configurations of Standard Range Plus and Long Range. Having fewer configurations streamlines manufacturing and allows Tesla to benefit from economies of scale.
In general, expect Tesla prices to incrementally decrease over the next few years. As production scales up to meet demand, Tesla can pass cost savings down to consumers. Future technology improvements like 4680 battery cells could also reduce production costs. While prices may fluctuate in the short term, the long term trend for Tesla vehicle affordability is upward.
Comparisons With Other Tesla Models
It can be helpful to compare Model 3 pricing with Tesla’s other electric vehicle models:
Tesla Model S
- Starts at $104,990
- Ultra-luxury, full size sedan
- EPA range of 405 miles
- Plaid Performance model does 0-60 mph in under 2 seconds
The Model S is Tesla’s flagship model with premium features and styling. While the Model 3 can match it in some performance specs, the Model S has a more upscale interior and design. It sells at a much higher price point than the Model 3.
Tesla Model X
- Starts at $120,990
- Ultra-luxury SUV/crossover with falcon wing doors
- EPA range of 348 miles
- Seats up to 7 passengers
The Tesla Model X is an all-electric luxury SUV with unique styling like falcon wing doors. It has excellent cargo space but still delivers blistering performance. The Model X also sells for around double the starting price of a base Model 3.
Tesla Model Y
- Starts at $65,990
- EPA range up to 330 miles
- Electric crossover SUV
- Based on the Model 3 platform
The Tesla Model Y is essentially a Model 3 transformed into a compact SUV. Because it shares much of the same underlying architecture, it sells for just a small premium over a base Model 3 while offering more cargo room and a higher driving position. The Model Y is only slightly more expensive than a Model 3.
Overall, the Model S and Model X sell for $50,000 to $75,000 above the cost of a base Model 3. They offer more luxury features and styling content relative to the Model 3’s focus on affordability and mass market appeal. The Model Y crossover splits the difference in pricing between the Model 3 sedan and the larger luxury models.
Comparisons With Gasoline Vehicles
Although electric vehicles carry a price premium up front, they offset some of those higher monthly costs through savings on fuel and reduced maintenance.
Comparing the Model 3 to gas-powered alternatives shows how competitive it can be:
Toyota Camry
One of the most popular mid-size sedans is the Toyota Camry. A new Camry LE with no options starts at around $25,000 MSRP. Even a top-of-the-line Camry XSE with 300 hp and luxury options tops out around $35,000. While vastly cheaper up front, fuel and maintenance costs for 5 years can easily exceed $15,000. The Camry gets up to 38 mpg combined.
Over a 5 year ownership period, the Camry ends up costing around the same as a base Model 3 when you factor in fuel savings and electric vehicle tax credits. But the Model 3 will offer a much more advanced tech experience and faster acceleration than any Camry.
BMW 3-Series
The BMW 3-Series has long been considered one of the best compact luxury sedans. With exceptional driving dynamics and handling, it appeals to many enthusiasts. But even an entry-level 330i costs around $43,000, with high-end models approaching $60,000. Expect around 30 mpg combined fuel economy.
While not directly equivalent, the Model 3 Long Range provides similar acceleration times and high-end interior materials for just slightly more up front cost. And it offers a vastly superior technology experience. The Tesla’s lower ongoing fuel and maintenance costs can compensate for the higher initial purchase price over 5-10 years of ownership.
Cost of Ownership Over Time
In general, electric vehicles tend to cost less to own over time than gasoline cars. With the Model 3’s class-leading efficiency and very low maintenance requirements as an EV, the total cost can become lower than comparable gas cars within 5-10 years.
For example, a study by the Union of Concerned Scientists estimated that a Tesla Model 3 would have a total 5 year cost of just $35,400 compared to $51,600 for an equivalent Audi A4 sedan. The higher depreciation and fuel costs for the Audi outweighed its lower up front price tag. Tax credits and incentives also helped offset the Tesla’s initial purchase cost.
Over the full lifespan of the vehicle, an EV like the Model 3 gets even more cost competitive thanks to minimal maintenance requirements. With far fewer moving parts than a gas car, there’s no need for oil changes, timing belt replacements, fuel system maintenance, and more. Just replacing wear items like tires and brakes is required most of the time.
Even electricity costs are minimal with a Model 3. Fueled on the average US residential rate of around $0.15/kWh, the Model 3 SR+ would cost just $0.04 per mile driven. That’s less than one-quarter the per mile fuel cost of a typical gas car getting 30 mpg at $5/gallon. The long term savings really add up.
So while the Tesla Model 3 still commands a premium purchase price, forward-thinking buyers are rewarded with lower total ownership costs in the long run. The advanced EV technology, minimal maintenance, and supercharging network all provide savings that outweigh the initial price tag.
Conclusion
The Tesla Model 3 manages to be both the most affordable and one of the most capable electric vehicles on the market today. With pricing starting at $46,990 for the Standard Range Plus, it sits at an attainable mid-range price point while offering leading technology and performance. Spending $8,000 to upgrade to the Long Range or $17,000 to upgrade to the top Performance model buys you even more driving range, luxury, and blistering acceleration. Adding options like premium paint and interiors plus self-driving capability can quickly push the price above $60,000 for a fully loaded Model 3. But federal and state incentives can reduces the price by $7,500 to $10,000. Compared to luxury gas sedans, you get dynamic performance and a high-tech experience for similar long term ownership costs once fuel and maintenance savings are factored in. While still a significant up front investment, the Model 3 offers an appealing combination of affordability and advanced EV ownership.