Tesla Model 3 Inventory Discounts Vanish

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Senior Pricing Analyst

As CarsDirect’s resident pricing expert, Alex offers must-know analyses of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured by The Wall Street Journal, Fox Business, Motor Trend, Automobile Magazine, and more.

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, Senior Pricing Analyst - October 18, 2023
Tesla Model 3 EV sedan red paint exterior color front view

Inventory discounts on the Tesla Model 3 have quietly vanished in the wake of a series of price cuts. According to Tesla's website, Model 3 inventory discounts are now practically non-existent in most parts of the country. While we're still seeing Model 3 demo vehicles for sale, there may be no advantage in price whatsoever.

In Southern California, Tesla's official Model 3 inventory page shows no inventory discounts whatsoever apart from certain demo vehicles. Even then, the Model 3's best inventory discounts barely approach $1,000. In some cases, we're actually seeing low-mileage Model 3 demo vehicles with no discounts listed whatsoever.

In May, Tesla introduced inventory discounts worth up to $1,340 on the Model 3. Barely a month later, discounts were doubled to $2,680. After reportedly missing delivery expectations, Tesla lowered its Model 3 base prices to just $38,990 excluding destination. The Model 3 also still qualifies for a $7,500 federal tax credit.

Tesla Model 3 inventory discounts October 2023

This summer, our analysis found that the Tesla Model 3 could be cheaper than a Kia Forte when taking into account real-world dealer markups. Around the same time, Model 3 leases were cheaper than the Ford Mustang. We even saw some problematic claims that the Model 3 was cheaper to buy than a Toyota Camry.

While Model 3 discounts appear to have evaporated, the EV has arguably never been a better deal. Last week, Tesla slashed Model 3 lease prices by up to $100 a month. With Model 3 prices starting at just $329 per month, our records indicate that a new Tesla Model 3 has never been cheaper to lease than it is right now.

The move is clearly putting pressure on competitors. Shortly after Tesla's lease price cuts, Hyundai cut IONIQ 6 prices to as low as $299 a month. At the same time, the IONIQ 5 saw a $50 price cut to $349 per month, the lowest price since the car's launch in 2021. The changes could present a unique opportunity for buyers.

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, Senior Pricing Analyst

As CarsDirect’s resident pricing expert, Alex offers must-know analyses of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured by The Wall Street Journal, Fox Business, Motor Trend, Automobile Magazine, and more.

Follow On: Twitter

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