Tesla has resumed taking orders for its long-range Model 3 after a pause of almost nine months. The electric car reappeared on the Tesla website this week, sporting a significant discount of nearly 18.5%, with prices starting from $47,240. However, the discount comes with a catch: the model's maximum range has dropped from 358 miles to "325+" miles for the 18-inch "Aero Wheels" configuration. The long-range Model 3's projected range drops to 310 miles with the 19-inch "Sport Wheels" upgrade. Tesla's efforts to reduce costs may be behind the change.
Tesla has cut prices before to boost sales, as it did in December last year, which unsettled investors. It also issued additional price cuts in April, only to increase prices again recently.
Discounts led to a steep drop in net income of 24% for the vehicle manufacturer in the first quarter of 2023. In spite of this, Tesla's Model 3 remains popular. Depending on the wheels, it has a range of 267 to 272 miles.
People who want to drive long distances without frequently charging their batteries have always opted for the long-range Model 3. It may disappoint some potential customers to see Tesla reduce the car's range, but the price reduction will certainly attract those who had been considering buying the long-range Model 3 but were repelled by its high price. A resumption of Model 3 orders may indicate that Tesla is starting to regain its financial footing after a difficult year.
