Cars

Tesla Model 3: Affordability Won’t Sustain, Here’s Why

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The word affordability should not be taken for granted, especially if it comes from Tesla Motors. This is partly the reason why you must not delay pre-ordering the Model 3 as the so-called affordable EV car is going to get a little more expansive in 2017.

Tesla revealed earlier this month that any orders for the Model 3 that takes place in 2017 onwards will not be given free access to the vast Supercharger network. To enjoy the Supercharger service, consumers will have to purchase the add-on for an additional fee.

Things are not expected to get cheaper for the Model 3 and the diminishing perks for 2017 pre-orders are nothing more than the start of a long price increment chain. We have seen Tesla raising the price of the Model S and Model X before and we can expect the same fate for the Model 3.

It is an obvious outcome especially since Tesla identifies themselves as a luxury carmaker for the EV market. The fact that the EV market is still lacking big volume models means that the pricing of affordable cars are not really set.

1 Comment

  1. Zachary Albrecht

    November 30, 2016 at 12:38 pm

    For one, most consumers of the model S already charge at home, which is fractions of the cost of fuel. Given that you don’t seem to actually recognize the news, with the production cuts from OPEC, the appeal of EV’s will go up yet again. You’d need gas prices to literally cut in half of where they are today for it to considerable. I personally did the math on my consumption usage of a 2013 VW Passat TDI and I spend yearly about $2300-2550. When I calculate that at my current electric rates and conservatively factor every 250 miles I’d be charging a 90 kwh battery, my cost drops to nearly $600-650 a year. This easily translates to the Model 3 as well.

    For number two, 35k is a pretty decent priced vehicle before the federal and state incentives. Given the average cost of a new car is currently 28k, this is by far not in the “luxury” status. The Model S and X are luxury but not the S. Since most people will sell their car or trade it in, their out of pocket cost drops to likely less than 20k they’ll spend on a vehicle for 72 months.

    For number three, your vehicle expenses are trivial. Tires and wiper fluid. On my comparison with the 13′ Passat, I’m saving about 9 grand over the average lifetime of the car.

    Also pre-orders has reached, supposedly based on multiple other journalist, nearly 800k worldwide. If you do the math, that’s in the ballpark of $25 billion USD. Tesla financials, conservatively, will be about 10 billion higher a year until they can clear their backlog in pre-orders. The real news on this is that for some it may take them, Tesla, 3 years to clear the backlog, simple due to their, Tesla’s, capacity limitations.

    If you are really going to do whoever paid you to write this crap a favor, perhaps find a more informed way, like a real journalist would do, to make your case. For those who actually do use their brains, you become questionable in how much intelligence you actually have.