Tesla Model 3 Price and Model S Price Updates: What’s Changed in the Past Few Weeks?

Pricing at Tesla Inc. is never set in stone, at least for the company’s best-selling product – electric cars. But over the past few months alone Tesla has changed pricing and options on all models of their electric cars: Model 3, Model S and Model X. Here’s a quick run-through of what has changed in the recent past.

The Slow Rise of Paint Pain

When Model 3 delivery started, Tesla asked $1,000 for the Red Multi-Coat paint, which increased to $2,000 till the second week of September, and now it costs $2,500. Tesla left the price of the Pearl White Multi-Coat pain untouched and it still costs $2000.

Tesla also reduced the number of paint options from seven to five, dropping Obsidian Black and Silver Metallic options that were priced at $1,500.

Takeaway: Tesla is trying to push the red paint orders to a lower level by increasing the price. Either the demand was already too high for Tesla’s liking or Tesla is facing additional workload to roll out red Teslas compared to other colors. Most probably, it’s a bit of both.

“Moving 2 of 7 Tesla colors off menu on Wednesday to simplify manufacturing. Obsidian Black & Metallic Silver will still be available as special request, but at higher price”, wrote Tesla CEO Elon Musk

Tesla dropping two paint options also makes it clear that the company is facing throughput issues at its paint shop. Lowering the number of available options will certainly help Tesla to streamline its paint shop and increase the production rate. Once things settle down, Tesla can always add more options. For now, any other color is treated as a special case.

The AWD Pricing Tap Dance

Tesla increased the base price of Dual Motor All-Wheel-Drive from $54,000 to $55,000, the fourth increase since Tesla started registering AWD in late July 2018. When all the options are added, Tesla Model 3 AWD now costs $67,000, compared to $65,500 it costs at the start of September.

Model 3 Performance and Rear Wheel Drive

Tesla left the pricing unchanged for Rear Wheel Drive and Performance edition, with the fully loaded Rear Wheel Drive now priced at $61,000 and Performance edition now priced at $81,000, an increase of $500 thanks to the additional cost of Red Paint.

So if you keep away from the red paint, RWD and Performance costs the same, while AWD costs $1,000 extra.

Tesla Model 3 Pricing Update: September 14, 2018
Tesla Model 3 Pricing Update: September 14, 2018

For Full Specs and Pricing for Various Model 3 Options, Click Here

Do expect more price tweaks in the coming weeks as Tesla ramps up Model 3 production in an attempt to reach the initial 7000 to 8000 Model 3s a week target. Their medium term goal of 10,000 cars a week has been pushed to early 2019, but looking at last week’s numbers based on insider information, it seems they’re very close to their short-term goal.