Tesla Model 3 Gets Significantly More Expensive Overnight: Electric Car Subsidies Fall

Tesla’s Model 3 is meant to encourage customers to switch to the electric car brand. But the price of the compact car has now increased tremendously. This also has an effect on the subsidy premium.

Tesla’s price increases for the Model 3 have reached a new high: the automaker has increased the price of its entry-level car by more than €7,000, overnight. Instead of the previous price of €42,900, Tesla’s smallest electric car now costs €49,900.

For comparison: in January 2021, the basic version of the Tesla Model 3 still cost 39,900 euros. The company of the American billionaire Elon Musk did not give any reason for the current increase.

It is not the first price increase that the electric car manufacturer has imposed on buyers in recent times. Several Tesla models in Europe have been getting more and more expensive for about a year, in part due to global supply chain problems and a lack of chips. Added to this is the war in Ukraine, which is raising the cost of raw materials for battery production.

Financing for electric cars decreases

However, the current increase in the price of the Model 3 compact car hits customers in Germany twice as hard: they not only have to put up with a price increase of more than 16 percent and also pay a higher order fee of 250 instead of the previous 100. euros Also the demand for the full electric car premium it is now omitted for the Model 3 Standard Range and all other Model 3s.

The reason: the maximum environmental bonus for a new electric car of 9,000 euros – made up of a state fee of 6,000 euros and a manufacturer fee of 3,000 euros – is only received by those who pay a maximum net catalog price of 40,000 euros. As a result of the price increase, the part of the state subsidy is now reduced to €5,000 and the manufacturer’s part to €2,500. In total, the Model 3 is now subsidized with 1,500 euros less.

Tesla reports delivery record

The price increase coincides with a new record set by Tesla for deliveries: According to the electric carmaker, it delivered 310,048 vehicles in the first three months of 2022, almost 1,500 more than in the first quarter of the previous year.

Overall, Tesla sold a good 936,000 cars to customers last year, up 87 percent from 2020. Model 3 and Model Y compact cars continue to be the bedrock of Tesla’s business.

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