What is the cheapest Tesla
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Key Takeaways
- Tesla has significantly reduced prices on its EV range in 2023, making its cars more accessible and generating increased interest and orders, particularly for the Model 3 and Model Y.
- The cheapest Tesla model as of October 2023 is the Model 3, with a starting price of $38,990 and options ranging up to $50,990 for the top-performing Model 3 Performance.
- Competition in the EV market is increasing, prompting Tesla to lower prices to remain competitive, and government incentives and supply chain disruptions also impact Tesla's pricing. However, Teslas offer value for money with their safety ratings, zero emissions, and low running costs.
Tesla announced significant price cuts across its EV range in 2023, making its cars more accessible to customers. This move has been successful in generating interest and boosting orders, especially for Tesla's more affordable models, such as the Model 3 and Model Y.
So, how much does a Tesla cost, and what's the cheapest Tesla model you can buy in 2023?
What Is the Cheapest Tesla Model?
Model | Price (USD) | Range (miles) | 0 to 60 mph (sec) | Top Speed (mph) | Max Seating Capacity |
|---|---|---|---|---|---|
Model 3 | $38,990 - 50,990 | 272 - 333 | 3.1 - 5.8 | 140 - 162 | 5 |
Model Y | $43,990 - 52,490 | 260 - 330 | 3.5 - 6.6 | 135 - 155 | 5 / 7 |
Model S | $71,090 - 86,090 | 396 - 405 | 1.99 - 3.1 | 149 - 200 | 5 |
Model X | $79,990 - 94,990 | 333 - 348 | 2.5 - 3.8 | 149 | 5 / 6 / 7 |
Tesla is known for frequent price fluctuations, and almost all its models saw significant discounts in 2023. Based on October 2023 prices, these are the cheapest Tesla models you can find.
Tesla Model 3
The Tesla Model 3 is the most affordable Tesla model as of October 2023. Even before the massive January 2023 Tesla price drop, it was already the entry-level price point for Tesla, and now that prices have been cut, it's even more attainable.
The base model starts at $38,990 with only rear-wheel drive capability. The price goes up to $50,990 for the range-topping Model 3 Performance, which has 506 horsepower from its dual-motor all-wheel drive setup, as well as unique and larger wheels shod in sporty tires and upgraded brakes to help reign in the extra performance.
There is also an in-between Tesla Model 3 Long Range All-Wheel Drive variant that costs from $45,990. It has a dual-motor setup like the one in the Performance model but with slightly less power, boasting a combined figure of 441 horsepower. Just like with the Performance model, the motors control torque digitally to the front and rear wheels, offering excellent handling and traction control.
The base rear-wheel-drive Tesla Model 3 provides an estimated EPA range of 272 miles per single charge and accelerates from 0 to 60 mph in 5.8 seconds. Model 3 Long Range All-Wheel Drive gets the same larger battery pack as the Performance model, so its range goes up to over 333 miles, and it can also accelerate to 60 mph in just 4.2 seconds.
The Model 3 Performance gets slightly less range at 315 miles, yet it slashes a second off the Long Range model's sprint time, requiring only 3.1 seconds to accelerate from 0 to 60 mph.
However, no matter which trim you choose, Tesla doesn't include mobile connectors with new cars, so you'll have to pay for that too.
Tesla Model Y
The Tesla Model Y is a larger EV and costs more than the Model 3. It comes in three different options, all of which have all-wheel drive. A key feature of the Model Y is the seven-seat interior.
The Model Y starts at $43,990, with the Long Range pushing that to $48,990. The Performance trim, the most expensive option of the three, costs $52,490 without any extra bells and whistles. Add-ons like Enhanced Autopilot, 20-inch wheels, red paint, a white interior, and a tow hitch will up prices by around $12,000 for all the Model Y versions. You can also purchase Tesla's Full Self-Driving capability for an additional $12,000.
The base model has an EPA-estimated range of 242 miles and a top speed of 135 mph. The 0 to 60 mph sprint clocks in at a rapid 6.6 seconds. Move up to the Model Y Long Range, and the EPA estimate increases to 318 miles, and the acceleration time drops by almost two seconds to 4.8. The Model Y Performance is the quickest model, thanks to its 462 hp output that takes it to 60 mph in 3.5 seconds, but it does have slightly less range at 303 miles.
Tesla Model S
The Tesla Model S is a high-end electric sedan that trumps the smaller and cheaper Model 3 and Model Y in nearly every category. But these improvements come at a higher price point.
The Model S can put out 1,020 hp of peak power in its top Plaid guise, with an estimated range of 396 miles on a single charge. In addition, it has a trio of powerful electric motors that can deliver a maximum speed of 200 mph and potentially whiplash-inducing acceleration, with a claimed sprint time from standstill to 60 mph of just 1.99 seconds.
The lower-tier Dual Motor All-Wheel Drive model, the base Model S, starts at $74,990 and can go up to over $94,000 with add-ons. The Model S Plaid, a tri-motor All-Wheel Drive, starts at around $89,990 with zero upgrades. However, with add-ons like 21-inch wheels, a cream interior, and Full Self Driving Capability, you are looking at over $109,000.
Tesla Model X
The Tesla Model X is the company's most premium offering. Even so, this luxury SUV also had its prices cut in 2023. At the start of the year, the Model X can be had for $89,880, according to Car and Driver. But by October 2023, its initial price had dropped by almost $10,000 to $79,990.
This electric SUV comes in two variantsthe standard dual-motor version, which has a 348-mile range and a 0 to 60 time of 3.8 seconds, and the tri-motor Model X Plaid, which has a reduced 333-mile range but a blazing 2.5-second time to 60. If you get all the options, like the 22-inch Turbine Wheels, Black and White interior, Yoke Steering Wheel, and Full Self-Driving Capability, the total price will jump to over $115,000.
The Tesla Model X has many features since it's the company's most expensive car. Nevertheless, we're looking forward to the Cybertruck, which will start at a little over $39,000 and will be released on November 2023
What Affects the Price of a Tesla?
Tesla prices are affected by a diverse range of economic factors. Below, we highlight the major factors that can influence the price of Tesla EVs.
Component Cost
The cost of major components, such as batteries, electric motors, and power electronics, significantly influences Tesla's prices. While lithium-ion battery, electronics, and motor prices have dropped significantly in the last few decades, some customers may still find them unaffordable.
Demand
Production constraints have always limited Tesla's capacity to meet the rising demand for EVs. As per basic economic principles, the price of EVs rises as demand for clean transportation increases. However, that is somewhat counteracted by more EVs coming onto the market, so it's a balancing act.
Government Incentives
Government incentives to promote EVs and mitigate the negative environmental impact of carbon emissions are noteworthy factors impacting EV prices. Historically, Tesla has benefited heavily from the federal stimulus and tax relief packages, but it's doubtful Tesla will qualify for the new US federal EV tax credit.
Supply Chain
The supply chain disruptions following the pandemic have significantly impacted the prices of Tesla vehicles. For example, the 2020 global chip shortage specifically affected the production costs of Teslas and other automakers.
While Tesla tried to make some minor changes to the electronic components of its EVs, it couldn't stop the rising price of the vehicles.
Competition
Tesla was the leader in battery-electric vehicles in the 2010s when you had no other option if you wanted a decent EV. However, many other manufacturers have started making reliable EVs that could give Tesla a run for its money. For example, some of the top EVs manufactured in the US include the Volkswagen ID.4, Ford F-150 Lightning, Mercedes Benz EQS, and the GMC Hummer EV.
Furthermore, the carmaker faces increased competition abroad, particularly in China, where other EV manufacturers like BYD (what you must know about BYD) have control of the market. This means Tesla must drop its prices to remain competitive in the crowded electric vehicle scene.
Consider Buying a Used Tesla
It's nice to have a brand-new car, but sometimes your budget just won't cut it. But if you still want a Tesla EV, consider buying a used one. Of course, you shouldn't just go out and buy the first one that comes along. Instead, you should first check these things to consider when buying a used Tesla.
But if you're ready to make that second-hand Tesla purchase, visit Tesla's used inventory and find an EV that fits your needs and budget.
Are Teslas Worth the Price?
Tesla cars are certainly not the cheapest, but they offer plenty of value for your money. They have great safety ratings, zero carbon emissions, and excellent driving performance. All Tesla models have low running costs compared to traditional gas-powered vehicles.
Additionally, you can also use your home solar panel system to charge your vehicle. Using solar energy as a fuel source will further reduce your environmental footprint.
