Model 3 Price Drop Announced? (What You Need To Know)

Model 3 Price Drop

Let’s be honest, Tesla isn’t exactly synonymous with bargain… “price drop” isn’t a regular part of Tesla’s marketing vocab. But, with Tesla paving the way in tech and automotive, they are becoming more and more lucrative. Teslas are notorious for their small carbon footprint and luxuriousness, and it’s no secret that the luxury of Teslas comes with a high price, until recently.

Tesla has recently dropped the price of their Model 3, making it a more affordable eco-friendly option for those looking to go green. The price for Tesla’s Model 3 has dropped a decent $2,000. The popular economy model has decreased from $39,990 down to $37,990.

So why did Tesla drop the price of their Model 3, and why now? Not to mention, with all of Tesla’s gadgets and gizmos, you may be wondering what exactly is included in the Model 3? Read on to find out.

Why the Price Drop?

The Model 3 price drop happened rather silently, and there’s speculation as to why for a few different reasons. The decision was likely made in order to spur demands as Tesla has become more widely available and, subsequently, more popular.

Another possible reason is so that Tesla can roll out more affordable models as it phases out the older, more expensive ones. Tesla is also set to release a Semi Truck, and it’s Cybertruck, this year.

The last reason is so that Tesla could still be a part of Chinese government incentives for “new energy vehicles.”

Are Self-Driving Capabilities Included?

It’s no doubt that Tesla’s self-driving capabilities have caught everyone’s eye. Although most of us had envisioned a future filled with flying cars, at least we’ve got self-driving cars.

Yes, autopilot is included! However, if you’d like the auto-steer for city streets, you’re looking at an additional $10,000.

Here’s what you can expect with Tesla’s self-driving capabilities:

  • Autopilot- auto steer, acceleration, and break
  • Automatic lane changes
  • Self-parking (parallel included)
  • Traffic light and stop sign control

These features are unlike any other economy car on the market. You can feel safe with these features, too, as Tesla has been crash-tested by the National Highway Traffic Safety Administration (NHTSA), receiving a 5-star rating for each seat, as well as a rollover.

Breakdown of What’s Included with Model 3

In the chart below, you can find all of the price variations depending on the exterior coat, wheel type, and interior color. Keep in mind, this doesn’t include the additional $10,000 for Autosteer on city streets.

 Pearl White Multi-CoatSolid BlackMidnight Silver MetallicDeep Blue MetallicRed Multi-Coat
Aero Wheels with Classic Black Interior$36,490$37,490$37,490$37,490$38,490
Sport Wheels with Classic Black Interior$37,990$38,990$38,990$38,990$39,990  
Aero Wheels with White Interior$37,490$38,490  $38,490$38,490$39,490  
Sport Wheels with White Interior$38,990  $39,990$39,990$39,990$40,990

Information from this table is from the Tesla website. The prices in the table above are all for the Standard Range Model, which gets up to 263 miles of driving range per charge, and goes from 0-60 mph in 5.3 seconds, and can go up to 140 mph.

The Long Range Model gets up to 353 miles of driving range per charge, and can go from 0-60 mph in 4.2 seconds, and can go up to 145 mph. The upgrade is a hefty $9,000 more.

The Performance Model gets 315 miles of driving range per charge but can go from 0-60 mph in 3.1 seconds and goes all the way up to 162 mph. It also has exclusive Überturbine Wheels. The price increase? An extra $17,000 more than the Standard Range.

The performance model is really only for those that prioritize the speed and take-off speed, considering that the driving range per charge is actually less than that of the long-range model.

If driving long distances is more important to you, the extra $9,000 may be worth getting the long-range model with its 353-mile range.

Extra Features

  • Heated front seats
  • Immersive audio
  • Internet and video streaming
  • “Caraoke”
  • Tinted glass roof with ultraviolet and infrared protection
  • Power folding, auto-dimming, heated side mirrors
  • Custom driver profiles

One of my favorite additional features is the fact that you can play Mario Kart using the steering wheel as your controller! (While parked, of course.)  You can also create beats on the car’s touchscreen, and best of all: you can assign fart noises to every seat in the car. Necessary?

Of course not. Hilarious? Absolutely.

Is Now a Good Time to Purchase a Model 3?

Considering the recent price drop, now is an excellent time to purchase a Tesla if you’re eager to get your hands on one. Of course, there are a few things to consider in purchasing a Tesla Model 3 right now.

Safety Concerns

As of now, there are a few known safety concerns with Tesla’s Model 3. Tesla is working to remedy these, of course, but they’re worth noting as of now. Especially if a Model 3 is on your recent purchase radar.

Unintended Acceleration

Last year, 2018 and 2019 Models, as well as other years for the Model S and X, reportedly had “sudden unintended acceleration” during attempts to park and while in traffic, causing many of them to unintentionally crash into other cars, curbs, and walls.

A lawsuit was issued last November, but Tesla responded after evaluation that it was a user error. The NHTSA came out with a statement in agreement with Tesla.


Those who have already received their 2021 Model 3 and Model Y users have expressed concerns with the car’s heater. Tesla hasn’t officially confronted the issue, but it appears that some users have had their heaters malfunction altogether.

Another concern with the car’s heater is with the footwell heater being too hot, to the point where safety is a concern.

Many Tesla users have taken their cars in to maintain these issues, and some have just received a new car altogether. As this issue is still very fresh, hopefully, Tesla is able to resolve it soon.

Production Concerns

Tesla is also constantly releasing new models and upgrades and halting the sales of older ones.

This is dependent on whether the current Model 3 body and specific functions meet your preferences. Otherwise, you may want to wait for another Tesla with different features or another price drop.

As you may also know by now, Tesla did have to halt production at the beginning of lockdowns in its Fremont facility, so as it recovers from that, you may want to wait for production to return back to normal.

Tesla did promise a $35,000 base price on its affordable model several years ago, so it is possible that as demand goes up, it will soon meet that promise.

Additional Information for Tesla Model 3

The Model 3 cargo space is ahead of most of its competing models, which is noteworthy if you plan on using your Tesla for road trips.

The Model 3 has a digitally controlled torque driving system, giving you better handling and traction control in all weather conditions. Dual motors also respond to changing conditions in as little as ten milliseconds.

As you most likely know by now, Tesla’s are fully electric. The only downside to that is you need to find a Supercharger, and charging it takes 15 minutes, according to Tesla. While in more rural areas, these stations can be difficult to find, they are popping up in more and more places as the demand increases.

Tesla sales have surprisingly doubled since this time last year, despite Covid-19. If you order your Tesla online today, the estimated delivery is about 7-10 weeks.

Model 3 Price Drop- Worth it?

Taking into consideration the current model and what is in your budget for extra bells and whistles, e.g., white interior, sport wheels, city autopilot, there’s definitely a lot to consider.

The recent safety issues are nothing exponentially concerning, so it really just depends on what is important to you.

In the world of Teslas, a $2,000 price drop is surely something worth your while in owning the most sought after luxury car on the market.

Tesla Discounts:


The articles here on are created by Greg, a Tesla vehicle and Tesla solar expert with nearly half a decade of hands-on experience. The information on this site is fact-checked and tested in-person to ensure the best possible level of accuracy.

Recent Posts