2024 Tesla Model 3 LR Price Increased By $1,500

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Automotive Editor

Based out of the Washington, D.C. area, Joel Patel is an automotive journalist that hails from Northern Virginia. His work has been featured on various automotive outlets, including Autoweek, Digital Trends, and Autoblog. When not writing about cars, Joel enjoys trying new foods, wrenching on his car, and watching horror movies. 

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, Automotive Editor - February 14, 2024
Tesla Model Y

Roughly a month after introducing the updated 2024 Tesla Model 3 Highlander, Tesla has given the vehicle a price hike. Pricing for the Model 3 Long Range trim with the dual-motor configuration has gone up by $1,500, as the range-topping version of the electric sedan costs $48,880 (prices include destination).

The change was first spotted by Electrek, who also pointed out that the change in price makes the Model 3 Long Range nearly as expensive as the Model Y Long Range. The Model 3 has consistently underpriced the Model Y, which makes sense, as the Model Y is a larger EV with seating for up to seven. The latest $1,500 price increase for the Model 3 Long Range, though, only makes it $500 less than the Model Y Long Range which costs $49,380. Throughout both vehicles’ lifespans, the Model 3 has been consistently thousands of dollars less than the Model Y. Seeing them separated by just $500 is surprising.

For instance, the base Model 3 continues to be priced at $40,380, which makes it $4,000 cheaper than the base Model Y RWD. That’s the kind of price difference that we’ve come to expect between the Model 3 and Model Y – not $500.

2024 Tesla Model 3

It’s also strange because Tesla is offering a $1,000 discount on the Model Y RWD and Model Y Long Range trims. Pricing for these models will go up after March 1. Add in the available $7,500 federal tax credit for the Model Y, and it looks like the Model Y is the better buy over the Model 3.

Tesla didn’t provide any information on why it increased pricing for the Model 3 Long Range. Electrek thinks it could have something to do with production. The outlet claims that it can produce a large number of Model Y SUVs, while it’s more limited when it comes to the Model 3 production. It could also have something to do with the Model Y’s upcoming update codenamed Juniper.

Tesla recently confirmed that the Model Y Juniper refresh isn’t “coming soon” to North America. The all-electric automaker could be getting ready for the update by attempting to clear out its current inventory of the Model Y in the form of more affordable pricing to its closest competitor – the Model 3. With just $500 separating the Model 3 Long Range from the Model Y Long Range and the Model Y being eligible for the $7,500 federal tax credit, it makes sense for shoppers to purchase the SUV over the sedan.

Pictured: Tesla Model Y (Top), 2024 Tesla Model 3 (Middle)

Source: Electrek

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, Automotive Editor

Based out of the Washington, D.C. area, Joel Patel is an automotive journalist that hails from Northern Virginia. His work has been featured on various automotive outlets, including Autoweek, Digital Trends, and Autoblog. When not writing about cars, Joel enjoys trying new foods, wrenching on his car, and watching horror movies. 

Follow On: Twitter

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