Electric vehicle giant Tesla has just announced a second price increase for its refreshed Model 3 Long Range variant in the US market just more than a month after launching the upgraded electric sedan in North America.
Tesla Model 3 now costs as much as Model Y
It is worth noting that Tesla only currently offers the upgraded Model 3 Highland’s Rear-Wheel-Drive Standard Range and All-Wheel-Drive Long Range variants. The Musk-led company has yet to announce plans for the Performance variant, which left the lineup since the model revamp.
On Tuesday, Tesla once again increased the price of the refreshed Model 3 Long Range in the US market. In effect, it now costs as much as the Tesla Model Y electric SUV.
The AWD Long Range variant now sells at $47,490, indicating a $1,500 price increase from its initial launch price in the country. On the other hand, the entry-level RWD Standard Range’s price remains unchanged at $38,990.
For comparison, the Tesla Model Y currently costs $47,990. It must be noted that the popular electric SUV used to be more expensive than its electric sedan sibling. As for the base variant, the Tesla Model Y RWD’s price is still higher by $4,000 than the base Model 3.
Tesla’s pricing strategy
Tesla’s move to increase the pricing of the upgraded Model 3 LR is highly likely part of its strategy to discourage buyers from ordering the model, as the company currently struggles to match its production to the growing demand.
Tesla tends to change the pricing of its electric vehicle models depending on the status of its production capacity versus the customer demand. As of now, it seems that Tesla is having issues in its production ramp-up for the newly launched Model 3 Highland in North America.
Interestingly, Tesla appears to direct customers’ interest to the Model Y with new discounts for inventory units in the US.
2024 Tesla Model 3 prices
Presented below are the available 2024 Tesla Model 3 Highland in various configurations, along with their pricing:
| Model | Base Price | Dest. Charge | Tax Credit | Effective Price |
| 2024 Tesla Model 3 RWD 18-in | $38,990 | +$1,640 | N/A | $40,630 |
| 2024 Tesla Model 3 RWD 19-in | $40,490 | +$1,640 | N/A | $42,130 |
| 2024 Tesla Model 3 Long Range AWD 18-in | $47,490 | +$1,640 | N/A | $49,130 |
| 2024 Tesla Model 3 Long Range AWD 19-in | $48,990 | +$1,640 | N/A | $50,630 |
| 2024 Tesla Model Y RWD 19-in | $42,990 | +$1,640 | $7,500 | $37,130 |
| 2024 Tesla Model Y RWD 20-in | $44,990 | +$1,640 | $7,500 | $39,130 |
| 2024 Tesla Model Y Long Range AWD 19-in | $47,990 | +$1,640 | $7,500 | $42,130 |
| 2024 Tesla Model Y Long Range AWD 20-in | $49,990 | +$1,640 | $7,500 | $44,130 |
| 2024 Tesla Model Y Perf. LR AWD 21-in | $52,490 | +$1,640 | $7,500 | $46,630 |
Interested Tesla buyers must watch out for some very enticing deals on the Model Y Long Range, including as much as a $5,000 price difference from a brand new Model 3 LR variant.
Along with the price hike, Tesla also delayed the estimated delivery time for new Model 3 LR version orders from March-April to April-May.
