New Tesla Model 3 at $27K Could Double Sales

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Analysis of the global top ten battery electric car model sales and their average selling price indicates that Tesla could doubles its Model 3 sales by cutting China prices from $32k to $27.7K. This matches Ark Invest analysis of battery electric addressable market and price sensitivity.

The Tesla Model 3 is currently on track for 600,000 sales in 2023. Doubling sales of the Model 3 would be 1.2 million per year.

The Tesla Model Y is on track for 1.2 million in sales in 2023.

Substantial refreshes of the Model 3, Model S, and Model X could see all of them ramp to double in sales for 2024. This could also be a roadmap to making a refreshed Model Y in 2024. Tesla can take down a line or add new manufacturing in a new line and then have a rolling wave of upgrades.

Covered front and rear section new Tesla model 3 continue to be seen around the world. There are various renderings on what the new Model 3 will look like.

The Tesla Model S and Model X dropping prices $10,000 on a shorter range starting version by seems to double the market for those vehicles as well.

The Tesla Model 3

9 thoughts on “New Tesla Model 3 at $27K Could Double Sales”

  1. I’m car shopping in Southern California for a new hybrid. The Dealerships are tacking-on $15K to $20K above MSRP for a vehicle. TOTAL RIP-OFF!
    If Tesla were to offer a $27K EV, even without rebates, I would jump on that offer in a heartbeat and make the transition to electric, even though I dislike the current battery technologies.

    • Tesla is doing same thing dealership’s are doing except there’s no middle man and Tesla getting away it..

      How do you explain paying $50k for model 3 and 3 months later it’s $39k..

      I swear you consumers are clueless.

    • Same here. I went to a Bay Area dealership on Monday, interested in purchasing a 2019 Honda Fit for $20,600 with only 9,300 miles…still above the MSRP price but “reasonable”, given how inflated used car prices are still the norm.

      Car was in fantastic condition, but then they wanted to low-ball me on my trade-in by thousands, when I had a guaranteed offer from CarMax for $4,000 above what they were offering. I walked out.

      A 27k Tesla? I’ll put up with some of the charging hassles to not deal with shady dealership tactics.

  2. I am tired of Musk selling for less in China while gouging American consumers and relying on taxpayer welfare.

  3. I think Tesla could increase its sales by 10% just by coming up with more coherent model names. At least Musk hasn’t tried to rename Tesla the X company, though I wouldn’t put it past him. He is the worst brand marketer executive ever.
    Anyway, this article says nothing about either compromising range for low price, or what margins will be like if Tesla doesn’t cut something to get a lower price point.
    I think people are already balking at buying a sub-300 mile EV, or even sub-200 mile in real world charge-only-to-80%-capacity-and-don’t-discharge-below-20%-range, and that’s why the more expensive model Y is outselling the cheaper model 3 (or is it 2 now?) car.

    • Tesla’s margin on a Model 3 is something like $10K. If they can double sales by reducing the price by $4300, their total earnings go up, even without assuming cost reductions which they work on constantly (and they get help from the overall downtrend on battery costs).

      Lowering prices to increase volume has been their strategy every since the first “Master Plan.” Their only limiter is production capacity.

      As for the names, originally the four models were going to be SEXY but Ford claimed trademark on “Model E,” so they went with S3XY. It might be goofy but I wouldn’t say it’s incoherent.

  4. Wow, a 27k model 3 would sell like crazy.
    I’m hoping Tesla’s working on a compact pickup. The Rivian is too pricey, but the Fisker Alaska seems pretty good. I’m in the market to buy a EV smaller truck, but if anyone can make it cheap, it’s Tesla, who is becoming a behemoth in the affordable EV space.

  5. In theory, the Model S should be possible to make much cheaper to ride the economies of scale of a lower priced car. In theory, a de-contented Model S should be possible to sell for $50k. Model X will be trickier, because the door system is very expensive and probably not that amenable to cost reductions.

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