A third price increase on the Model 3 since the beginning of March took place overnight, and this one only five days after the previous one. Less than a week after adding €2,000 to the nominal rate of its cheapest car, Tesla added no less than €3,000 tonight, taking the Model 3 Propulsion to €49,990 without options!
The same car was sold for €43,800 at the beginning of the month, but it then benefited above all from the maximum ecological bonus of €5,000. For the end customer, the increase in two weeks is much stronger, since the price to pay has gone from €37,800 to €47,990 on this model. Nearly € 10,000 increase, this should put a big brake on the sales of Model 3, a car which had however broken records in 2021 thanks to its unbeatable price.
The best-selling car in Europe, the Model 3 propels Tesla to stock market peaks
Why these three sudden increases, after more than a year of such competitive prices? Like all (car) manufacturers, Tesla has to deal with ever-increasing component shortages, sometimes delirious price increases on essential components for electric cars, but above all Tesla has an almost full order book for 2022. A Model 3 Propulsion without options is announced for February 2023 in France and even if it is possible to obtain one more quickly, it proves that the production capacities of the brand are at their maximum level.
Pending the ramp-up of the two new factories, in Germany and Texas, the company prefers to increase its prices so as not to lengthen this order book. Rising fuel prices have also led to an increase in interest in electric vehicles and it is rumored that orders have exploded at Tesla as at its competitors. These price increases will discourage many, but that’s the goal and the company prefers to sell the cars it can produce with a much higher margin.
Moreover, the increase was not limited to the Model 3 Propulsion this time, all models increased by €3,000 overnight. The great autonomy thus starts at 58,990 € while the performance starts at 62,990 €, which deprives it of any bonus in passing. The Model Y is not spared, with a base price of €62,990 as well, which again deprives the SUV of any bonus.
Until then, Tesla has never hesitated to vary its prices sharply up or down. If you are not in a hurry, it is better to wait before ordering a car, even if it is difficult to predict a return to more reasonable values in the short term.