Tesla has reintroduced one of the best value Model 3s to its lineup, the 300-mile Long Range Rear-Wheel-Drive for $34,990, including the $7,500 federal tax credit.
The official EPA range estimate is set at 363 miles, which is about 100 miles more than the standard variant, equating to a price increase of about $3,500.
The Long Range Rear-Wheel-Drive Model 3 was first introduced in 2017, but was abruptly discontinued two years later. Tesla didn’t give an official reason for the move, but industry insiders believed it was a move to simplify and increase production at a time when it was falling short of its goals.
In 2017, the Long Rage RWD car was capable of 325 miles, with a 0-60 mph sprint time of 4.9 seconds and a top speed limited to 125 mph. According to an X post Elon Musk’s performance figures have remained unchanged, but the electric range ratio has increased significantly.
With its $7,500 federal tax credit, the 363-mile range Model 3 looks set to be one of the year’s best electric bargains, while Hyundai’s popular but less practical Ioniq 5 costs around $40,500 but has a 303-mile range by comparison.
According to Edmunds data, the average transaction price for a new car rose to $47,616 in June, prompting Edmunds consumer insights analyst Joseph Yoon to call the Long Range RWD Model 3 a “good deal” in the current market, according to Forbes.
Tesla increases the pressure
Tesla is likely benefiting from falling prices of Chinese-made electric car batteries, particularly the LFP cells that power the standard Model 3 RWD model.
According to BloombergThose made in China had fallen 51 percent last month to an average of $53 per kilowatt-hour. The average global price of these batteries was $95/kWh last year.
The timing is also perfect, as Tesla’s share of electric car sales fell below 50 percent for the first time in the second quarter of this year, amid mounting pressure in an increasingly competitive market.
Stephanie Brinley, chief analyst at S&P Global Mobility, told Forbes that “Model 3 growth appears to have stalled.”
We’re likely to see a more competitive pricing strategy from Tesla in the coming months as the world’s largest electric car makers try to fend off the competition.
According to a global consulting firm AlixPartnersOnly 19 of the 137 current electric car brands in China will be profitable by the end of the decade, with the company predicting that brands like BYD and Tesla will seek to consolidate their dominant positions by adopting more aggressive pricing strategies.
Good news for consumers, but not so great if you’re a struggling electric vehicle manufacturer ramping up production in small numbers.