Cars

Tesla Model 3: Failing Rebates Signal Big Price Hike

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It is official. The all-new Tesla Model 3 is getting distributed to those that have pre-ordered the vehicle and pending deliveries are expected to conclude by next year. This cannot be helped as there are over 300,000 orders made for the Model 3 and it will take a while for Tesla to fulfil those orders.

Despite being the biggest volume EV yet, the success of the Model 3 is still not cemented yet and reports are claiming on a short end for the car. It is widely indicated that the Model 3 will fall out of favor once the rebates and tax incentives for EVs turn obsolete.

Such a thing is already occurring in Denmark, Hong Kong and other regions and this has caused a drastic drop in sales of the Tesla Model S. The Model 3 may be the more affordable variant but without the incentives, the price of the car will head north.

If the Model 3 is to retail above $40,000, more consumers are likely to snub the car for another vehicle of that same amount. $40,000 is a lot of money for a daily driver and it can tempt the consumers into adopting a luxury vehicle or a fully loaded hybrid if they prioritize fuel economy.