Discussion: Model 3 Price reductions - Jan / April / Oct 2023 and all other pricing discussions

[dakhlkt22]

Saw so many comments that confidently stated that Tesla would slash RWD/LR prices by $7,500 when they become ineligible for the tax credit.. Of course it could still happen but I always found it wildly unrealistic that Tesla would eat the cost.

Complicating this is the fact that US production will shift to M3 Highland at some point in the first half. M3 Highland, to my eye, has many outright improvements over the 2023 M3. Sure some people are upset about losing the turn signal stalk, but everything else is a big upgrade. I guess it depends on how consumers respond. How much are people willing to pay for those M3 Highland upgrades?

Maybe I missed the explanation for this, but why don't M3RWD and M3LR qualify at least for a $3750 tax credit? Even knowing they lose the battery part of the tax credit, those models are still fully assembled in the US.

 

[buckeye3]

Complicating this is the fact that US production will shift to M3 Highland at some point in the first half. M3 Highland, to my eye, has many outright improvements over the 2023 M3. Sure some people are upset about losing the turn signal stalk, but everything else is a big upgrade. I guess it depends on how consumers respond. How much are people willing to pay for those M3 Highland upgrades?

Maybe I missed the explanation for this, but why don't M3RWD and M3LR qualify at least for a $3750 tax credit? Even knowing they lose the battery part of the tax credit, those models are still fully assembled in the US.

I received a $4K inventory discount on my 2023 RWD. Even if Highland qualifies for the $7.5K credit, that’s still a minimum $4K cost for the upgrades since Highland won’t have any discount. Likely more, as I doubt it will start at $38,990 (current 2023 price).

Personally, I was ecstatic to spend $27.5K on a Tesla and can’t value the Highland upgrades for more than $2K.

 

[derekmw]

My thoughts were the same as @buckeye3, even if the highland qualifies for a partial rebate, I figured the Dec '23 price of RWD with discounts may be the cheapest we will see for quite some time. With the CT discount, I got it for $26.5k before all the fees/taxes (and including the full $7500 tax credit). I still see RWD (even non-LFP) used ones selling for above that price so I'm hoping if we hold on a few years, it won't be a huge depreciation hit when we move onto something else (I only own EV's about 2-3 years max)

 

[kpanda17]

Guys, 2023 M3 RWD $38-$3.9-$7.5-$2
$24.6K OTD
Wow
Btw, Tesla delivered 200 vehicles this past Saturday with mine at that location
I was early, they were ready, amazing customer experience
Perfect

 

[nothingisreal]

In the market for a M3 LR. Unfortunately with the tax credit and 179 depreciation dropping this model seems like the least value of all Tesla vehicles. Has there been any hint from Tesla that they may realign the 3 variants pricing now that the Performance is the only one with the credit?

 

[chado]

GM announced they will drop prices by 7500 for cars that lost the tax credit.

 

[ucmndd]

Maybe I missed the explanation for this, but why don't M3RWD and M3LR qualify at least for a $3750 tax credit? Even knowing they lose the battery part of the tax credit, those models are still fully assembled in the US.

The batteries aren’t assembled here, and that’s what matters.

 

[afadeev]

M3 Highland, to my eye, has many outright improvements over the 2023 M3. Sure some people are upset about losing the turn signal stalk, but everything else is a big upgrade.

It's not all rainbows and butterflies with highland update. A LOT of other useful features got stiped out on top of the turn stalk.
There is a thread about just that, for those who are interested:

Model 3 Highland Performance/Plaid Speculation

Please post up any rumors or thoughts. I'd love a triple motor Plaid version without the additional size and weight of the S. I think the 3 is their best platform for a performance vehicle as it's Tesla's current most nimble/lightweight/low CoG vehicle.

teslamotorsclub.com

I guess it depends on how consumers respond. How much are people willing to pay for those M3 Highland upgrades?

Consumers respond to pricing, first and foremost.
If they price keeps going down (further depreciating the existing fleet of TM3's in owners hands), consumers will overlook all other deficiencies.

Maybe I missed the explanation for this, but why don't M3RWD and M3LR qualify at least for a $3750 tax credit? Even knowing they lose the battery part of the tax credit, those models are still fully assembled in the US.

As of right now in January of 2024 (answer varies over time, and will likely change in the future), for US built Model 3s:

• TM3-RWD : LFP (Lithium-iron-phosphate) prismatic batteries using 2170 cylinders, largely produced by CATL in China. LFP batteries can be 30% less energy dense, but do not degrade from repeated 100% charging cycles.
• TM3-LR : NMC M50 cells (or actually NMC-A as they also have 4% aluminum) manufactured by LG in China.
• TM3-P : NCA (Nickel-cobalt-aluminum) battery using 2170 cells, manufactured by Panasonic in the US Nevada gigafactory.

Batteries assembled in Nevada theoretically qualify for full $7,500 Fed credit, subject to many other restrictions (including owner's income).
Batteries assembled in China get the theoretical credit phased out (subject to all the other restrictions) to at most $3,750 level, and to $0 at some point in the future.

HTH,
a

 

[whydontwe]

no hints

 

[Mayer]

Saw so many comments that confidently stated that Tesla would slash RWD/LR prices by $7,500 when they become ineligible for the tax credit.. Of course it could still happen but I always found it wildly unrealistic that Tesla would eat the cost.

Seem to be slashing prices on M3P at least: $45,890.

 

[mknmike]

Interesting that this is what I was able to copy off the site today. No mention of $3750 I’ve seen yet.

———

$7,500 Federal Tax Credit​

Only for eligible cash or loan purchases

Customers who take delivery of a qualified new Tesla and meet all federal requirements are eligible for a tax credit up to $7,500.

Adjusted Gross Income Limitations

• $300,000 for married couples filing jointly
• $225,000 for heads of households
• $150,000 for all other filers
  

Price Caps

The vehicle MSRP at time of delivery must not exceed the following caps. This price includes optional equipment physically attached to the vehicle at the time of delivery and excludes software features, accessories, taxes and fees.

• Model 3 Performance: $55,000
• Model Y Rear-Wheel Drive: $80,000
• Model Y Long Range: $80,000
• Model Y Performance: $80,000
• Model X Dual Motor: $80,000

Learn More

Your eligibility for any tax credits depends on your personal tax situation. We recommend speaking with a tax professional for guidance.

 

[dakhlkt22]

Interesting that this is what I was able to copy off the site today. No mention of $3750 I’ve seen yet.

———

$7,500 Federal Tax Credit​

Only for eligible cash or loan purchases

Customers who take delivery of a qualified new Tesla and meet all federal requirements are eligible for a tax credit up to $7,500.

Adjusted Gross Income Limitations

• $300,000 for married couples filing jointly
• $225,000 for heads of households
• $150,000 for all other filers

Price Caps

The vehicle MSRP at time of delivery must not exceed the following caps. This price includes optional equipment physically attached to the vehicle at the time of delivery and excludes software features, accessories, taxes and fees.

• Model 3 Performance: $55,000
• Model Y Rear-Wheel Drive: $80,000
• Model Y Long Range: $80,000
• Model Y Performance: $80,000
• Model X Dual Motor: $80,000

Learn More

Your eligibility for any tax credits depends on your personal tax situation. We recommend speaking with a tax professional for guidance.

Yeah, that's what it looked like a day or two ago too. Just the full $7500 credit or nothing.

 

[afadeev]

Interesting that this is what I was able to copy off the site today. No mention of $3750 I’ve seen yet.

Please don't assume that government employees were working over time during the holidays to update the site.

 

[mjwojtukiewicz]

Since GM is lowering the price on those cars that lost the tax credit, I think Tesla should do the same. Anyone agree? Unless he pulls
some rabbit out of his hat with new model 3

 

[tivoboy]

Since GM is lowering the price on those cars that lost the tax credit, I think Tesla should do the same. Anyone agree? Unless he pulls
some rabbit out of his hat with new model 3

I think what might be most likely, is the at least in USA the M3 Highland refresh, that should come up possibly end of Q1’24, MIGHT, might just have a slight increase to current M3 discounted pricing.. not including the last minute EOQ 2000-3000 price drops to move inventory, or free Supercharging, or free year of connectivity, etc. Just taking it UP maybe 5% from current levels.

At this point, with M3 AWD, LR AWD selling at $5K discount to current list, I think they might just move those prices UP ~ 5%, and consider that the equalizing price cut.

 

[ucmndd]

Since GM is lowering the price on those cars that lost the tax credit, I think Tesla should do the same. Anyone agree? Unless he pulls
some rabbit out of his hat with new model 3

They’ll do this if it’s needed to sell cars. Pretty simple.

 

[mjwojtukiewicz]

I think what might be most likely, is the at least in USA the M3 Highland refresh, that should come up possibly end of Q1’24, MIGHT, might just have a slight increase to current M3 discounted pricing.. not including the last minute EOQ 2000-3000 price drops to move inventory, or free Supercharging, or free year of connectivity, etc. Just taking it UP maybe 5% from current levels.

At this point, with M3 AWD, LR AWD selling at $5K discount to current list, I think they might just move those prices UP ~ 5%, and consider that the equalizing price cut.

Sorry, don't get any of this.The 2 model 3s have had the same price for several months. And I don't want supercharging or connectivity. Supercharging is overpriced and connectivity is $120.. They should get their sh*t together and start getting battery materials NOT from China

 

[tivoboy]

Sorry, don't get any of this.The 2 model 3s have had the same price for several months. And I don't want supercharging or connectivity. Supercharging is overpriced and connectivity is $120.. They should get their sh*t together and start getting battery materials NOT from China

so, list price is one thing, but these prices like 44$K for an LR AWD M3, which currently sits with a 10% discount? (And they have been ~ 2-5K lower at times towards last years EOQ pushes.

https://www.tesla.com/inventory/new/m3?TRIM=LRAWD&arrangeby=relevance&zip=94546&range=200

 

[Mayer]

Looks like Highland is available to order.
No price change.
Delivery Feb-March

 

[Mayer]

Looks like Highland is available to order.
No price change.
Delivery Feb-March

I just saw new thread on this topic from yesterday