Finally there are prices for the Tesla Model 3 and quickly got scared… More than 60 thousand euros?! Wasn't this the $35,000 car (approx. 31,000 euros) that would democratize the trams? After all, what's going on here? Let's take a closer look…
First, let's demystify the $35,000 Tesla Model 3 case. Announced with pomp and circumstance by Elon Musk at the model's first presentation in 2016, what is certain is that the $35,000 Model 3 has yet to go on sale , neither in the US nor anywhere else.
This version, which has recently been renamed the Short Range, will only start production in March or April 2019, according to Tesla, but it is not certain that this will happen.
When production of the Tesla Model 3 went live in 2017, it was only with the Long Range (long-range) version — the one that offers more autonomy thanks to a larger battery capacity — which alone added $9000 to the 35,000 advertised.
Why just boot with this version? Profitability. To ensure much-needed turnover, Tesla began by producing only the most expensive version possible at the time, delaying the introduction of the most affordable version several times already.
As a result, the Tesla Model 3 arrived on the North American market with a price of 49 thousand dollars and not 35 thousand — the $14,000 more is justified not only by the larger battery, but also by the Premium package, included as standard, adding another $5000 to the base price.
Reorganized range in 2018
But this year, once again for reasons of profitability, instead of launching the more affordable version, Tesla took the opposite path and introduced the versions with two engines (Dual Motor), even more expensive, adding all-wheel drive to the model.The range would be reorganized in this way, losing the initial Long Range version with rear-wheel drive, which was replaced, more recently, by an unprecedented Mid Range version (medium range), which maintains the rear-traction, but comes with a lower capacity battery pack, losing some autonomy — 418 km against 499 km for the Long Range (EPA data) — but also available at a lower price, about 46 thousand US dollars.
It is currently the most affordable version of the Tesla Model 3 until the arrival of the Short Range , the long-awaited $35,000 version — a 50 kWh battery pack with an expected range of 354 km (EPA).
The Model 3 that “costs”… 34 200 dollars
To help with the confusion, if we go to Tesla's US website, the Model 3 Mid Range is priced at just $34,200… “after savings”, that is, the purchase price is well below the announced US$46 thousand. What are these savings anyway?
At the outset, in the USA, 7500 dollars are immediately deducted, an amount corresponding to the federal incentive for the purchase of electric cars. However, it will be “sun of short duration”, as this incentive is dependent on the number of electric cars sold by brand. After 200,000 electric cars are sold, the incentive will be cut in half ($3,750) for the next six months, and will be cut in half again ($1,875) for the next six months.
According to Tesla's website, the $7,500 incentive will only be available on any of its models until the end of this year, so starting in 2019, the price in the US will go up.
In addition to the federal incentive, the “reduced” price of the Model 3 Mid Range is achieved, in a somewhat controversial way, through estimated fuel savings . According to Tesla, that's another $4300 saved. How did you reach this value?
Essentially, they exemplified it using one of the competing models, the BMW 3 Series (without specifying which engine), with an estimated average of 8.4 l/100 km, six years of use, an average of 16 thousand kilometers per year and one gas price around… 68 cents per liter (!) — you read that, it's the average gas price in the US.
And so it's possible to “have” a Tesla Model 3 for $34,200. (around 30 thousand euros)… But be careful, they are all values for the United States of America, just and that's it.
In Portugal
These accounts are of no interest to Portugal, at least for now… The Mid Range version is not the one that comes to our country at this early stage. For Portugal, and for Europe in general, only Dual Motor versions will be available, precisely the more expensive ones.
You 60 200 euros for the AWD and the 70 300 euros for Performance, when compared to prices in the North American market — 46 737 euros and 56 437 euros, respectively — they are higher, it is true, but the difference is easily explained by import costs and taxes — in Portugal it pays only the VAT; trams do not pay ISV or IUC.
And if you have a company, the Tesla Model 3 can be VAT deducted , tax benefit for 100% electric cars with a base price (excluding tax) up to €62,500 — see the article on tax benefits for electric cars and plug-in hybrids.
So, contrary to what we've read and heard, the Tesla Model 3 are not costing twice as much in Portugal as in the US — prices even seem to be in line for available and comparable versions, and the fact that they do not pay ISV and IUC in Portugal even puts prices on par with other European countries. Even in Spain, where traditionally new cars are much cheaper, the difference for Portugal in the Model 3 comes down to very few hundred euros.
As a final note, a curious fact about the “car that will electrify the world”. The average transaction price in the US last September stood at $60,000 (approx. €52,750) — with the introduction of the Mid Range, it is expected to drop…slightly.
The Model 3 is also a victim of the way it was advertised. The $35,000 Tesla — purchase price, no incentives or possible fuel cost savings — is simply not a reality… It's likely to happen, but not right now.