Tesla raises Model 3 Long Range and Performance prices in US

Tesla has again increased the price of its two premium Model 3 variants in the US, just three weeks after a general increase to all of its models.

In the US, the Long Range Model 3 now costs $US55,990 ($A74,755 converted) after a $US1,500 price increase was applied.

The Performance version is now $US62,990 ($A84,116 converted), a $US 1,000 increase. Pricing for the RWD Tesla Model 3 remains the same at $US46,990 ($A62,719 converted). Model Y pricing was not affected.

While the prices of most cars fluctuate from time to time, Tesla prices are typically scrutinised more because of the company’s high profile in the transition to electric mobility. Also, because it sells its cars online, its pricing is more transparent and easily tracked by media watchers.

Recent increases have been ascribed to the increasing prices of materials as supply chain issues affect industries in general.

In particular for the electric vehicle industry, the price of nickel has been skyrocketing. Premium variants of Tesla’s mass-market electric cars use a high nickel cathode, whereas its base RWD models use a lithium iron phosphate batteries that do not have a high nickel content.

The US price increase also comes just weeks after Tesla increased the price of all Model 3 variants in Australia, in line with a price increase in overseas markets.

In early 2022, the base RWD Model 3 was priced from $A60,900 but has had two price rises in recent weeks. The latest has seen an additional $A3,000 applied to bring the starting price before options to $A63,900.

The Long Range Model 3 in Australia now costs $A76,200 up from $A72,300 earlier in the year, and the top-of-the-range Performance model three now costs $A88,900 up from $A84,900. All pricing is before on-roads costs are applied.

The new US pricing also comes shortly after Tesla increased the price of the base RWD Model 3 by €7,000 in Germany.

The new pricing in Germany brought the starting price of the RWD Model 3 to €49,990 ($A72,617 converted), a 17% increase. This means it is now considered a luxury car and is no longer eligible for Germany’s generous €9,000 subsidy.

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