Sure, the $10,000 price cut for the resurrected Model 3 Long Range is nice, but the lower 325-mile range isn’t exactly “long-range” anymore.
After a nine-month hiatus due to high demand, the Model 3 Long Range is finally back in Tesla’s configurator. Interestingly, it returns with a significantly lower price, trying to heat up the EV market once again. With an MSRP of $47,240, it’s now 18.5% cheaper than the previous year’s $57,990. It’s a pretty satisfying discount, indeed, but what’s the catch?
Well, the other side of the coin is not all that sweet since there is also a decrease in range, now to around 325+ miles compared to the previous model’s 358 miles. This is likely due to the adoption of different battery cells — presumably, China-sourced Lithium-iron-phosphate (LFP) — that cost less to manufacture but are heavier than the old Lithium-ion cells, resulting in a lower range overall.
Although Tesla hasn’t released any official statement, the assumption of the LFP battery usage is also supported by the fact that the Long Range model now only qualifies for the $3,750 federal tax credit, just like the Standard model. Keep in mind, to qualify for the full federal tax credit, the Model 3 must meet one of the specific requirements, such as containing 40% critical minerals from the United States or FTA countries or 50% of the battery component value coming from North America.
That said, the Model 3 Long Range isn’t particularly lacking in the performance department, though, thanks to the dual-motor AWD system capable of going from 0 to 60 mph in 4.2 seconds and reaching a 145 mph top speed.
But to anyone seeking to buy this EV, be aware that the more powerful Performance variant would only cost you an extra $6,000 — before the full $7,500 tax rebate it’s still eligible for. This means the range-topping Model 3 Performance could set you back $45,740 — only $2,250 more than the Long Range model after subsidy, for a lot more oomph.
Nonetheless, the price adjustment coincides with Ford‘s announcement of reopening Mustang Mach-E orders, leading many to speculate whether this move is merely Tesla’s response to the automotive giant’s challenge. However, if there’s anything to learn from recent Tesla-related News, it’s that Elon Musk always has a knack for devising unique and highly influential strategies to stay competitive in the EV market — but will it be enough this time?
