Continues to increase in the short term
Famously, production of each new Tesla model begins with the most expensive version, then moves on to less expensive models as increased manufacturing brings down capital expense per car. This would mean we should expect to see the average selling price (ASP) decrease over time then, right? Well, not exactly. Now, the ASP for the Model 3 appears to be higher than ever at $59,000.
How could this be? Well, first things first: let's talk about where we are getting these numbers. They aren't official figures from the California automaker. Instead, we've found this particular tidbit in a tweet (embedded below) by @TroyTeslike, who published a graph using data pulled from a Google doc called the Model 3 Order Tracker. This site features the self-reported data of over 4,600 owners and future owners of the Tesla Model 3.
The average sale price of the #Model3 reaches $59,000 in Q3 based on survey data. Source https://t.co/vNvxCtdi6a The increase is expected to continue at least until the end of 2018.@Teslarati @ElectrekCo @Jalopnik @cleantechnica @InsideEVs @GreenCarReports @HyperChangeTV pic.twitter.com/BOvnfAT0rb
— Teslike (@TroyTeslike) August 22, 2018
So, why is the average selling price up? It's because the very first Model 3 production wasn't actually the most expensive variant. Sure, they all have the Long Range battery and premium package with its top-spec seats and other goodies, but there are features that have arrived more recently that are pumping up the prices. Specifically, that would be the all-wheel-drive and Performance versions. Not only do these variants have the added cost of $5,000 for an extra motor, but the Performance version in particular also has a number of options not available on lesser versions of the Model 3 which tack on an additional $5,000 to the bottom line.
The ASP won't stay this high, of course. When the much-touted $35,000 base version starts shipping early in 2019 we expect to see this number to move downward and then level off. For now, though, the increase in ASP is a great help to the company as it works to show a profit by the end of the 3rd quarter of the year.