Why is Tesla selling 2021 demo Model 3s with 12% less range?

Tesla often sells demo units of its popular Model 3 electric sedan, but a curious detail about a number on sale via its website has the internet talking.

First spotted by Twitter user Seth Horowitz, a number of Model 3s are on sale in multiple US locations with a note above the payment button that says, “Range figures may be up to 12% lower due to battery age.”

Clicking on “Learn More” next to the note, a pop-up says: “This vehicle was built with a battery pack manufactured as early as 2017. While this pack was brand new when the vehicle was built, the cells have reduced capacity due to their age and you can expect up to 12% reduction in range from current production specifications.”

The above screenshot was taken from a model viewed by The Driven, available for local delivery in California’s Bay area, and all the vehicles found by The Driven appear to be Long Range vehicles.

What’s going on?

As Horowitz points out, it appears all the vehicles being sold with this note are listed as 2021 models, and have very little mileage on them. Yet, Tesla’s warning says the range could be 12% less than stated.

A story like this, unsurprisingly, is perfect fodder for short-sellers and naysayers. We’ve asked Tesla for an explanation but we won’t hold our breath waiting for an answer.

But there are several factors that are likely driving Tesla’s decision to use 2017 batteries in 2021 bodies. And, there are a few facts worth considering before jumping to any conclusions.

In the US, new Long Range Model 3s are rated for 334 miles (537km) new by the US-based Environmental Protection Agency (EPA). In Australia, Tesla’s website says 614km because it states the European testing cycle known as WLTP – generally, the EPA rating is considered closer to real-world driving range.

It’s worth noting that the demo models mentioned above in fact are listed with 353 miles (568km) of driving range, and 88% of this equals 310 miles, or 498km.

Tesla owners generally experience a noticeable drop in driving range in the first year of ownership, then further degradation at a slower rate over time. Which battery chemistry their vehicle uses will determine the rate of degradation, as does charging patterns (using fast chargers more than charging slowly at home degrades a battery more, for instance).

But Tesla defends the longevity of its batteries, and says it has designed its battery packs to outlast the car itself.

In its 2020 Impact report, Tesla said that it could show that Model S and Model X batteries degrade just 10% after driving 320,000km, and an independent study in 2020 of Model S vehicles showed that on average over 7 years, their batteries lost 1% capacity per year.

However, these vehicles have done under 3,000km, so what gives?

It’s entirely possible that Tesla has taken batteries from older vehicles, and chosen to put them in new bodies rather than try and sell older models with superceded powertrains and features. Remember, the Model 3 underwent a design refresh for 2021, with new headlights and black door handles among other changes.

Also, it turns out that 310 miles is exactly the same EPA range given for the 2017 Model 3 Long Range.

So, the mileage stated on the vehicles could refer to the distance the vehicle itself has done, not the battery.

Ongoing cell constraints, which Tesla boss Elon Musk has openly said is holding back the launch of higher demand vehicles like the Cybertruck and Tesla Semi, and an end of year push to sell inventory are also possible factors.

In addition to all of this, it’s important to note that Tesla is giving out the same 120,000 miles/192,000km eight-year limited battery and drive unit on the above vehicles, and the same limited four-year, 50,000 miles/80,000km warranty that it gives out on its new vehicles.

Meanwhile, pricing seems to be around $US2,000 less than the vehicle would be new, meaning a saving of $US83 for every mile lost in range – plus the added bonus that it probably won’t degrade as much as a new battery would in its first year.