Tesla: Model 3 Is The First EV Priced On Par With ICE Equivalents

The comparison concerns only the premium segment.

Tesla Model 3

Mark Kane

By: Mark Kane

Aug 11, 2021 at 3:32pm ET

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Tesla notes in its "2020 Impact Report" that the Model 3 is the first electric car in history priced on par with its gas-powered equivalents. That's before taking into consideration any regional subsidies and lower running costs.

We must note that the company positions itself as a premium brand and, for the sake of comparison, picks competitors from the premium segments, often from the European brands like Mercedes-Benz, BMW and Audi.

The chart shows the entry-level Tesla Model 3 Standard Range Plus version, which starts at $39,990 ($41,190 with a destination charge):

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Tesla Model 3 prices in the U.S.:

Model Base Price Dest. Charge Tax Credit Effective Price 2021 Tesla Model 3 Standard Range Plus $39,990 +$1,200 N/A $41,190 2021 Tesla Model 3 Long Range AWD $49,990 +$1,200 N/A $51,190 2021 Tesla Model 3 Perf. LR AWD 20" $56,990 +$1,200 N/A $58,190

Tesla notes also that "Unfortunately, most other EVs on the market today are still priced at a $10,000 to $20,000 premium compared to their direct ICE vehicle equivalents."

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However, we add that Tesla's chart shows the prices of conventional cars before dealer incentives. This is a tricky thing, because Tesla has a direct sales model, without a dealer network. It means that the Tesla prices are effective, while the ICE prices might be lower or, depending on the situation, with limited availability, some new models happen to be more expensive than MSRP.

Hopefully, in the not-too-distant future, the EV prices will reach price parity not only in the premium segment but also in the mainstream segment, which is much more difficult.