This Tesla Electric Car Dropped in Price Nearly 30% in 1 Year
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The Tesla Model 3 has a few claims to fame: it’s the cheapest Tesla electric car, and it’s a wildly popular entry-level luxe EV. However, the latest buzz around the baby Tesla revolves around the price of used Model 3s. Shockingly, Tesla Model 3 prices have dropped nearly 30% from October 2022 to October 2023.
Is the Model 3 cheaper in 2023?
Fortunately for fans of the cheapest electric car in the Tesla in the marque’s lineup, the Model 3 starts at $38,990 before the addition of a $7,500 federal tax credit.
What’s more, the latest EV pricing data from iSeeCars suggests that the average used Model 3 dropped nearly 30% from October 2022 to October 2023. Specifically, Tesla’s new model price cuts have driven down the cost of used EVs across the board, not just Tesla’s models. That’s good news for fans of the baby Tesla who don’t want to contend with the pricing on a new 2023 or the upcoming facelifted 2024 model.
Still, even falling used Tesla prices haven’t kept buyers from picking up the keys to a new model; the Model 3 is on pace to outsell its figures from 2022. Further, the Tesla Model Y, the most popular vehicle in the marque’s lineup, outsold its 2022 performance by Q3 of this year, firmly establishing itself as the EV SUV to beat in the current market.
|Model (2023)||2023 sales YTD (units)||2022 sales (units)|
What’s the cheapest Tesla you can buy?
Until the California EV maker produces something akin to a sub-$30,000 “Model 2,” the 2023 Tesla Model 3 is the cheapest vehicle in the marque’s lineup. However, the Tesla Model 3’s $38,995 starting price refers to its single-motor Rear-Wheel Drive trim.
The Long Range trim raises the price to $45,990. However, Tesla says the dual-motor AWD Long Range model will cover 333 miles on a single charge, 61 more than the base model. Furthermore, for those EV fanatics seeking bragging rights, the $50,990 Model 3 Performance will sprint to 60 mph in just 3.1 seconds, albeit at the expense of 18 miles of range.
The popular Tesla electric car isn’t the only model to drop in price
While the precipitous drop in used Tesla Model 3 prices is good news for EV bargain hunters, the baby Tesla isn’t the only popular car to experience used car price drops. The BMW i3 and Chevrolet Blazer also dropped double-digit percentages year-over-year.
|Used vehicle make/model||Price drop from Oct 2022 to Oct 2023 (%)|
|Tesla Model 3||28.9%|
|BMW 2 Series||15.8%|
According to an iSeeCars study, new and used cars are more affordable than last year. Used cars are an average of 5.8% more affordable than Q3 2023, and the news just gets better for new and used EVs. Specifically, new EV prices are down about 10%, and used models are closer to 20%.
However, the rate of increasing affordability is decreasing, meaning prices may reach an equilibrium in 2024. Keep up with MotorBiscuit for the latest hybrid, Tesla, and electric car content!