Upgraded Tesla Model 3 Long Range gets $1,000 price raise in the U.S.

Tesla has increased $1,000 in price for the Upgraded Tesla Model 3 in the U.S. which was announced last month by the EV maker.

The change is coming for the Dual Motor Long Range version of the 2024 Model 3. It now has a purchase price of $46,990 an increase from the initial $45,990.

Tesla has not made any addition or reduction to the base rear-wheel drive version, staying at an introductory price of $38,990. The Tesla Model 3 is not eligible for Federal tax credit due to the new IRA and IRS guidelines on vehicle components resourcing.

The new guideline restricts electric vehicle (EV) makers from sourcing vehicle components from a few countries including China. The current Tesla Model 3 doesn’t abide by the new Federal policies and failed to qualify for the Federal Tax Credit.

Unlike the Model 3, the Tesla Model Y Long Range is priced at $41,490 after a federal tax credit of $7,500. Its purchase price is $48,990 without the tax credit.

BREAKING: Tesla has increased the price of the Model 3 Long Range in the US by $1,000 to $46,990. pic.twitter.com/Y0PTnhuEme

— Sawyer Merritt (@SawyerMerritt) February 4, 2024

Tesla Model Y base model further cuts the purchase price to $36,490 after federal tax credit from $43,990.

The current price addition is just another instance of Tesla’s strategy and it’s also happening in other markets. Last week, Tesla reduced two base Model Y trims in Canada to enable a $12,000 tax rebate in Quebec.

Tesla, in January, slashed prices of the Model Y rear-wheel and long-range versions by 4.2% and 8.1% respectively in Germany. Identical changes in prices applied to Model Y in other European countries.