Tesla Model 3 prices take a tumble

The Tesla Model 3 electric car now offers improved equipment levels, increased driving range and minor styling tweaks inside and out as part of a global model upgrade that has also brought its starting price back down to $66,900 plus on-road costs.

This represents a price reduction believed to be as much as almost $8000 for some models.

The entry-level 2021 Tesla Model 3 Standard Range Plus starts from $66,900, while the mid-spec Model 3 Long Range now starts at $81,900 plus ORCs, and the top-spec Model 3 Performance is priced from $90,900.

The Model 3 Long Range and Performance prices listed on the Tesla website do not include luxury car tax, which add $1758 and $4458 respectively. This takes the price tags to $83,658 and $95,358 alike.

However, these prices are now closer to the original RRPs set last year – and which only increased on July 1, 2020, so anyone who placed an order over the past three months might now be feeling short-changed.

Thanks to “ongoing quality and efficiency improvements” – including changes to the powertrain, tyres, the adoption of a heat pump HVAC system (as seen on the newer Tesla Model Y) and software updates – driving distances have increased too.

The base-grade Tesla Model 3 has a cruising range of 490km, up 30km, and can sprint from 0-100km/h in a claimed 5.6 seconds.

The mid-spec Model 3 Long Range is good for 657km of driving between battery charges, Tesla claims, which is an increase of 37km, and will accelerate from 0-100km/h in 4.4sec.

The top-spec Tesla Model 3 Performance can travel 628km, up by 68km, and is blisteringly fast from 0-100km/h, taking just 3.3sec.

Tesla has tweaked its mid-size electric sedan’s interior and upgraded equipment levels, starting with two extra high-output USB-C ports for rapid device charging and a traditional USB-A port in the glove box.

The twin wireless phone charging mats are retained but redesigned, while a power-opening tailgate can be activated via a button on the boot or remotely via the Tesla app.

There are new sun-visors that now magnetically snap into place, and the cabin has a larger central storage area with a sliding lid.

The interior colour scheme has been tweaked, with matte black replacing the gloss piano black plastics, along with satin sill plates, graphite seat controls and ‘metalised’ infotainment scrolling wheels located on the steering wheel.

These extras come on top of the standard features across the Tesla Model 3 range, including 12-way power-adjustable heated front seats, power-folding and heated side mirrors, dual-zone climate control, keyless entry and motor start, 15-inch touch-screen infotainment system, a tinted glass roof with UV and IR protection, Autopilot semi-autonomous driving aids and five colour choices.

Tesla fans will be able to pick the 2021 model-year updates via the new-look alloy wheels, although there are minor changes around the body as well, with the previous chrome edging around the windows and the door handles replaced with a satin black shade.

New tyres with lower rolling resistance have been added to all models to improve energy efficiency.

It’s not clear why Tesla has slashed the price of the Model 3, but overseas reports suggest European and Asian deliveries (including to Australia and New Zealand) will soon come from Tesla’s Chinese factory.

A local spokesperson was unable to comment on whether this was now the case for Australian-delivered cars.

Earlier this month, Bloomberg reported that Chinese-market Tesla Model 3 vehicles have dropped in price by around 10 per cent due to the fitment of lower-cost cobalt-free battery packs.

Tesla boss Elon Musk said last month at the company’s annual shareholder meeting and ‘battery day’ that it was “extremely important to have a factory in each continent”.

“Having a factory in China that will serve China and soon many other countries in the region will be key to us tightening that total sort of chain of cashflow,” he said.

Although Tesla doesn’t readily release sales figures, it is understood the milestone of 10,000 cumulative sales will soon be reached in Australia, with the Model 3 taking much of the credit.

The Tesla Model 3 EV is covered by a four year, 80,000km warranty, while the battery and drive unit have an eight year or 240,000km warranty.

How much does the Tesla Model 3 cost?
Standard Range (RWD) – $66,900
Long Range AWD – $83,658
Performance AWD – $95,358

*Prices exclude on-road costs