Summary
- Tesla has streamlined the Model 3 lineup but still offers a good lease deal on the Standard Range trim
- The Standard Range Model 3 is on the new inventory page and includes a $7,500 lease incentive
- The MSRP can be misleading, as the Standard Range does not meet requirements for domestic battery sourcing
- The move to rationalize the model lineup helps profitability for Tesla and most consumers
- The Standard Model 3 is also available on the used market at affordable price points
Article
Tesla has made changes to its Model 3 lineup, removing the Standard Range Rear Wheel Drive from the landing page but still offering it on the new inventory page. Despite this change, the Standard Range Model 3 is still available for lease at a competitive price of $263/month, compared to $389/month for the Long Range RWD Model 3. This leasing option includes a $7,500 incentive, making it a great deal for those looking for a more affordable electric vehicle option.
The decision to remove the Standard Range from the landing page has caused confusion among consumers, as the Long Range RWD Model 3 appears cheaper due to the $7,500 federal tax credit that doesn’t apply to the Standard Range. Tesla’s move to streamline its lineup is in response to the Inflation Reduction Act, which requires domestic battery sourcing for critical components and materials. This requirement has affected the availability of certain models due to changing content rules and tariffs.
Despite the challenges posed by the IRA, Tesla’s decision to rationalize its model lineup may actually benefit consumers who need it most. By removing the Standard Range Model 3 from the lineup, Tesla is able to improve profitability, offer cheaper options to most consumers, and potentially only impact higher-income households who wouldn’t qualify for the tax credit in the first place. This shift in strategy reflects Tesla’s commitment to adapting to changing regulations and market demands in the electric vehicle industry.
For those who still want the Standard Model 3 option, there are plenty available on the used market at more affordable price points. The average price of a used Model 3 is around $25,600, making it a more accessible option for budget-conscious buyers. The availability of the Standard Range Model 3 on the used market provides an alternative for those who may not qualify for the tax credit but still want to experience the benefits of owning a Tesla electric vehicle.
Overall, Tesla’s decision to streamline its Model 3 lineup reflects the company’s ongoing efforts to adapt to regulatory changes and market demands in the electric vehicle industry. Despite the confusion caused by the removal of the Standard Range from the landing page, consumers can still access this model through the new inventory page and take advantage of competitive lease prices and incentives. By offering cheaper options and benefiting a wider range of consumers, Tesla continues to innovate and evolve in the rapidly changing EV ecosystem.
Read the full article here
