Colorado: New Tesla Model 3 RWD For Under $30,000?

June 2023 starts in the United States with an interesting opportunity to acquire an entry-level Tesla Model 3 RWD for less than $30,000.

The car itself has a starting price of $40,240 (plus $1,640 of obligatory costs), but recently it became eligible for the full $7,500 federal tax credit, which brings the effective cost to $34,380.

That’s the starting point on the federal level. When deducting the new $5,000 tax credit in Colorado, the base Tesla Model 3 RWD should be effectively available for $29,380.

We are aware that local incentives in other states are not as generous and that not everyone is eligible for tax credits (income brackets), but for some, this is definitely an opportunity.

Tesla EV Prices (June 3, 2023)

ModelBase PriceDest. ChargeTax CreditEffective Price
2023 Tesla Model 3 RWD 18-inch$40,240+$1,640$7,500$34,380
2023 Tesla Model 3 RWD 19-inch$41,740+$1,640$7,500$35,880
2023 Tesla Model 3 Long Range AWD 18-inch$47,240+$1,640$7,500$41,380
2023 Tesla Model 3 Long Range AWD 19-inch$48,740+$1,640$7,500$42,880
2023 Tesla Model 3 Perf. LR AWD 20-inch$53,240+$1,640$7,500$47,380
2023 Tesla Model Y AWD (4680) 19-inch$47,490+$1,640$7,500$41,630
2023 Tesla Model Y AWD (4680) 20-inch$49,490+$1,640$7,500$43,630
2023 Tesla Model Y Long Range AWD 19-inch$50,490+$1,640$7,500$44,630
2023 Tesla Model Y Long Range AWD 20-inch$52,490+$1,640$7,500$46,630
2023 Tesla Model Y Perf. LR AWD 21-inch$54,490+$1,640$7,500$48,630

* Tesla adds a Destination fee (DST) of $1,390 and an Order Fee of $250 to all its models ($1,640 total).

Existing inventory

A very interesting thing is that the entry-level Tesla Model 3 RWD might be acquired effectively for less than $30,000 (when factoring federal and local EV incentives) also in multiple other states.

That’s because Tesla has some discounted existing inventory of Model 3 and those cars qualify for the $7,500 federal tax credit. According to Sawyer Merritt, who closely follows Tesla’s prices, in some of the states, the effective cost is noticeably below $30,000 (excluding destination charge/order fee):

• VT: $26,320
• MA: $26,830
• PA: $27,330
• RI: $27,820
• DE: $27,820
• NY: $28,320
• CA: $28,330
• CO: $28,330
• CT: $29,030
• ME: $29,320

Here is an example (excluding destination charge) for Massachusetts:

• Tesla inventory discount: $2,410
• Fed EV incentive: $7,500
• MA EV inventive: $3,500
Total: Up to $13,410 off

This situation might not stay forever. According to Troy Teslike, Tesla has some Model 3 inventory in the US to sell (almost 1,000 units). Once the volume is reduced, the discounts will disappear.

Hopefully, in the future, we will see more all-electric models with prices under $35,000 or even $30,000, without factoring in any incentives to boost EV adoption.

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