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Why Model 3 Owners Are Angry and What Tesla Is Sort-Of Doing About It | Forbes

I haven’t seen any negative social media comments about Tesla’s soon-to-be-available $35,000 Model 3, but I have seen numerous angry comments about recent price changes on existing models which have gone down by $6,000 over the past two months since the $7,500 Federal subsidy was cut in half on January 1st. But if you scroll down, you’ll see some good news for existing owners.

Staged price drops

Tesla lowered the price in three stages. In December, the only models available were the midrange (264) mile model for a $46,000 base price, the All Wheel Drive started at $56,000 and there was also a more expensive Performance Model. On January 2nd Tesla dropped the base price by $2,000 to partially compensate for the federal subsidies being cut from $7,500 to $3,750. Then they reduced the price again in February and then, on February 28, the midrange Model 3 went down to $40,000 and the company reintroduced the longrange version at $43,000. That’s a huge price cut over late December when Tesla was pushing buyers to hurry up and order before the end of the year to take advantage of the full tax credit.

Now, someone ordering a Model 3 today will pay substantially less than someone who ordered it before January 1st, even when taking the tax credit into consideration. In my case, I paid $59,100 for a midnight silver Model 3 with Autopilot in December, including doc fees, delivery fee, and California sales tax. Once I get my $7,500 federal tax credit, I’ll be out $51,600.  Someone who ordered that same configuration today would wind up spending $45,060, including taxes and after claimed the $3,750 credit. That’s $6,450 more (considering the extra tax). Truth be told you can’t order that exact configuration. My numbers are based on California sales tax,  and do not include any state or local incentives.  Most states have lower taxes but it doesn’t change the equation much.

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Why Model 3 Owners Are Angry and What Tesla Is Sort-Of Doing About It.

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