Tesla Price Cut Brings Model 3 Even Closer To Elon Musk's First Promise

Tesla is once again slashing the prices of parts of its lineup. This is the second time this month that prices have dropped for the EV brand and now the Model 3, Tesla's least expensive EV, get's even less expensive. Now, a base Model 3 retails for exactly $39,990, dipping the price under $40,000 for the first time in quite a while. The bone-stock (not that Teslas have too many options anyway)Rear-wheel drive Model 3 has an estimated range of 272 miles, roughly in line with what you would get from the other budget-star EV, the Chevy Bolt. 

If recent months are any indication, Elon's EV automaker seems to be moving in an opposite direction than companies like Ford, whose flagship EV, the F-150 Lightning has just gotten more expensive since its launch, and that's even after huge delays in manufacturing. At least this new Model 3 price cut is closer to the original target price of $35,000 that Elon Musk boasted about when the vehicle launched.

Another price cut

The Tesla Model 3 has been the brand's best-seller since it was launched in 2017. Model 3s and Model Ys make up the vast majority of Tesla sales with flagship cars like the Model S and Model X lagging behind fairly significantly. In the first quarter of 2023, Tesla sold 412,180 Model 3s and Model Ys (Tesla sales figures do not differentiate between the two). For comparison, the brand sold 10,695 Model S and Model Xs. To be fair, the Tesla Model S starts at $84,990 and is hardly anyone's definition of a budget car, but Tesla is not alone in struggling to move flagship EVs. General Motors has had quite a difficult time getting anyone to buy the GMC Hummer EV. 

Tesla as a company doesn't always elicit warm fuzzy feelings from a sizable portion of the automotive community, but price cuts are always a positive thing for the consumer.