Price drop on Tesla Model 3 - is now the time to buy?

Tesla’s entry-level EV, the Model 3, found its Australian retail price cut by upwards of $7,000 in the past few weeks. This significant reduction in price is intriguing for us EV enthusiasts as it bodes the question: ‘Is it the right time for me to buy a Tesla?’

Tesla vehicles have historically taken the crown when discussing the desirability of an EV, the brand and their product often innovative, modern, and downright fancy; but with all this prestige, comes a hefty asking price. Tesla’s aren’t cheap, we all know that, but this recent price drop has made the Model 3 slightly more affordable.

The Model 3 has three varieties, the ‘Standard Range Plus’, the ‘Long Range’, and the ‘Performance’ models.

The ‘Standard Range Plus’ was and still is the cheapest option for the Model 3 range, the lowest spec vehicle available. The new asking price is currently sitting at $66,900 before on-road fees, a price drop of $7000 in total. This is the biggest reduction across the Model 3 series and on their already cheapest vehicle. This might put the Standard Range Plus in the minds of many more buyers.

Next, the ‘Long Range’ model newly demands $83,425 before on-road fees, a price reduction of $6000.

And finally, the top of the range ‘Performance’ model costs $92,425 before on-road fees. This car is now $5000 cheaper but still commands a pretty hefty price tag, as you can expect the drive-away cost to be about $100,000.

These price changes were also accompanied by other positive revisions to the cars, including a quoted range increase from all three of the Model 3 varieties, an expected uptick of between 30-68km depending on the specific model.

Is a Tesla right for you?

Now, you might be getting excited about the near future, your new Model 3 on the horizon, or you might be still asking “Is a Tesla right for me?”.

As Tesla drops their prices of the Model 3 it does need to be noted that the price to plug into their Australian Supercharger network has gone up. No official statement has been made by Tesla yet, but Model 3 drivers have seen charging prices per kWh increase upwards of 25% in the past few weeks.

An old statement by Tesla in 2018 has resurfaced in the face of this change.

“The overriding principle is that Supercharging will always remain significantly cheaper than gasoline, as we only aim to recover a portion of our costs while setting up a fair system for everyone. This will never be a profit center for Tesla”

If this stance holds true in 2020, we would hope that charging will stay cheaper than fueling up with gasoline but, if you’re buying a new Tesla, expect to pay more than now to use their charging network.

Buying a car, especially an EV, is a pretty significant decision to make. Tesla's specifically are rather expensive, and even though they are a prestigious brand in the eyes of the media, there is a large market out there full of fantastic EVs that aren’t Tesla’s.

You have to ask yourself; can your wallet afford a Model 3 that, in the end, might not be as practical as some of the more reasonable SUV or hatchback EVs on the market? They may not look as fancy but a car like the Nissan Leaf or even the newly arriving MG ZS EV might serve you better as practical and affordable options.

Although, Tesla have dropped the price of their Model 3 range, these great EVs are still just outside the average family budget...for now.