The Tesla Model 3 is already one of the most popular electric vehicles, thanks to its large selection of great EV features and a reasonably low price compared to other electric cars. But it seems like Tesla is working on making the car even cheaper and has released a more affordable Model 3 with a downgraded interior in Mexico.
Don’t get me wrong. I’m glad that the Model 3 is available at a lower price in Mexico (it cuts the price of the current base Model 3 by around $4,000). But I really hope the vehicle makes it to the U.S.
What’s different?
There are a few things that set the cheaper Model 3 variant apart from the current base Model 3 in the U,S. Most of these have to do with a regression of features compared to the Model 3 Highland update that was released last year. For example, the new passenger display in the back seat has been removed, and the accent lighting in the car is white only. Additionally, the seat coverings are a cheaper fabric instead of the faux leather available in the current Model 3. And there are no options for heated seats or a heated steering wheel.
These changes are actually very reasonable. Accent lighting isn’t a must-have for most car buyers, and it seems totally fair to trade a passenger display for a lower price. Even seat heating, while helpful, isn’t necessarily all that important in areas like Mexico and California.
The vehicle keeps its most important features, though. Notably, it still offers a range of around 272 miles and the ability to accelerate from 0 to 60 mph in 5.8 seconds. In other words, the powertrain and battery remain untouched.
The elusive $30,000 EV
We’ve been hearing rumors of a cheaper Tesla for years now, but maybe this is the first signal that the elusive $30,000 Tesla isn’t a new model at all — just a downgraded version of what’s already one of the cheapest electric cars you can get. This cheaper Model 3 is around $4,000 less than the current base version of the car, which is available for $38,990 in the US. In other words, if this vehicle were to be released stateside, it could be priced at around $35,000.
That’s still a bit of a jump from the $30,000 figure that has been thrown around as the signal that EVs are priced similarly to their gas-powered counterparts, but it gets a whole lot closer than Tesla ever has before.
That’s not only great for budget-conscious electric car buyers, but for the industry as a whole. The U.S. has a cheap EV problem, largely due to the fact that European manufacturers don’t import to the U.S. and Chinese manufacturers are unable to import into the U.S. due to tariffs imposed on Chinese cars. The result of the combination of these two issues is that we have a limited selection of cheap electric vehicles available to us, which hampers competition and slows EV adoption.
An even cheaper Model 3?
Of course, the news begs the question: Could Tesla release an even cheaper Model 3? It’s hard to imagine this happening, considering the fact that the Model 3 is already so stripped down, and that if it did release a cheaper model, we wouldn’t want it to sacrifice things like range. A cheaper Model 3 could do away with things like accent lighting altogether, or it could involve Tesla continuing to ship previous-generation Model 3 cars.
The more likely scenario, however, is that over time, the Model 3 will simply drop in price as competition increases and things like battery tech get cheaper. We’ve already seen that happen over the past five years or so, especially with competition from the likes of Ford in the form of the Mustang Mach-E. It remains to be seen if the Model 3 can hit that $30,000 price point or if Tesla releases the rumored Model 2 before that can happen.
In the meantime, we’re really hoping that the cheaper Model 3 variant makes it to the US. Again, a cheaper Model 3 would further drive competition in the U.S., while making it even more compelling for new car buyers to get into the world of EVs.
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