why the small price increase marks the end of an era in France

By adjusting the price of its Model 3, now deprived of the maximum ecological bonus and its price attractiveness, Tesla marks the end of an era that will have lasted 1 year and two months.

Testa Model 3 // Source: Charlie Deets on Unsplash

In not even two weeks, the American manufacturer Tesla has twice increased the French price of its star electric sedan, the Model 3. First by 1,190 euros, raising the final bill to 44,990 euros, to within ten euros. the fateful threshold of 45,000 euros which deprives an electric car of the maximum ecological bonus of 6,000 euros.

The fact is that such a price cut short all desires for paid options: the slightest addition, whether it be 19-inch Sport rims or a black exterior color for example, catapulted its price above 45,000 euros . In this case, government aid is then limited to 2000 euros.

The gap widens with a further increase

But a few days later, Tesla did it again and decided to shake up its ultra-aggressive pricing strategy. Tesla did it, to the chagrin of many, by adding 2,000 euros to the final bill: the Model 3 Propulsion today costs 46,990 euros and turns its back on the famous 6,000 euros in aid, which it was able to benefit from during 1 year and 2 months.

January 2021 July 2021 March 2022 March 11, 2022
Price excluding bonus €43,800 €43,800 €44,990 €46,990
Ecological bonus awarded €7,000 €6,000 €6,000 €2,000
Final price €36,800 €37,800 €38,990 €44,990

This change could have relatively significant consequences in the short term. Between an electric car bought for 44,990 euros after the application of the ecological bonus of 2,000 euros and another sold for 38,990 euros thanks to a boost of 6,000 euros, the difference is considerable. And it must also be considered.

Tesla Model 3: why the small price increase marks the end of an era in France
Tesla Model 3 // Source: Frandroid

The acquisition of a connected or thermal vehicle is an important purchase in a lifetime, because the amounts are generally high. Here, Tesla could put off a number of motorists previously interested in buying a Model 3 Propulsion, which on the one hand is overshadowed, and on the other, gives a spotlight to competition.

Because the competition has just been organized in recent years. And if the Model 3 Propulsion offered so far one of the best, if not the best quality/performance/price ratio, this may no longer be the case today. The eyes of consumers could very well turn to a certain Renault Mégane E-tech.

Other attractive options

The French vehicle has received very favorable reviews from the press – we are the first – and has a range of arguments to convince the general public and tip the scales in its favor. It must be said: the price increase observed at Tesla completely enhances the advantages of a Mégane E-tech.

The latter, in its Balance EV60 version, can be used for both short and long journeys, all at a price of 34,200 euros after the application of the maximum ecological bonus. Its charging power of 130 kW – which less expensive versions do not have – also makes it possible to reduce the time spent at a terminal.

Tesla Model 3: why the small price increase marks the end of an era in France
Tesla Model 3 // Source: Unsplash – Stefan Lehner

Certainly, the Tesla Model 3 recharge even faster. Admittedly, they have at their disposal the complete and devilishly efficient network of Superchargers, as well as effective driving aid systems, but nevertheless, around 10,000 euros now separate a Propulsion model from a compatible Megane E-Tech with fast charging.

The second-hand market could also experience a new dynamic, where more affordable Model 3s will surely find takers more quickly. Until then, it was still better to turn to a new model, in particular because of the new AMD Ryzen chip integrated into the infotainment system.

The system of resale abroad will also become less attractive, given that the price difference becomes less important between France and other European countries. Future sellers will also be able to better negotiate the buyback price thanks to this change. More generally, this price increase is good news for current Tesla owners.

France, a still competitive market

Except that the current tariff schedule will perhaps calm certain enthusiasms and push users to take an interest in the occasion, without worrying about the performance of the system.

If we take a look at our Belgian neighbors, it should be noted that a Tesla Model 3 Propulsion purchased in France remains financially more attractive. Within the flat country, it is torn off for example at 50,990 euros. France therefore remains a competitive and interesting market for anyone wishing to invest in a Model 3.

Tesla Model 3: why the small price increase marks the end of an era in France

In the near future, we can also expect increases applied to the Long Autonomy and Performance models. The latter use LG batteries, of NCM composition (Nickel – Cobalt – Manganese). However, the price of nickel has recently soared due to the war in Ukraine.

Towards a drop in sales?

We could therefore naturally think that such a dazzling increase would have an impact on the final price of our electric cars, including the Model 3 Long Autonomy and Performance. Propulsion, for its part, relies on LFP (Lithium – Iron – Phosphate) batteries that are less expensive and nickel-free. Its price should therefore stabilize for a while.

In any case, it will be interesting to observe the number of Tesla registrations over the coming months in France. How much will this increase have an impact on its sales? Will the Californian group ride its wave of success as much? The bets are off, the dice are rolled. Place your bets, no more bets.

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