Tesla has adjusted the prices of the best-selling Model 3 many times. In April last year, it attracted a lot of attention when they reduced the starting price of the Model 3 Standard Range Plus by as much as 50,000 kroner. Then it went from 399,900 to 349,900 kroner.
With that, Model 3 ended up within reach of very many buyers. It emerged as a competitive alternative to smaller and cheaper electric cars. And on the combination range and price, no one could match the car.
Sales then also declined. Model 3 ended up being Norway’s best-selling car in 2021.
40,000 kroner more expensive
However, you can only forget this price now. Tesla has implemented a solid price increase for the car. In March, the price went up from 369,900 to 409,000 kroner, ie as much as 40,000 kroner.
At the same time, the Long Range version of the car has gone from 449,900 to 494,990 kroner. Model Y has also become more expensive, the Long Range version of this has gone from 534,900 to 549,900 kroner. Here, the price increase is far more modest.
Tesla has not commented on this itself, but Broom’s car expert Benny Christensen is not particularly surprised that they are increasing prices.
Cut the price of the supercar flop
– Both the Model S and Model X were expensive cars. With its Model 3, Tesla entered a whole new class.
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Many cars are becoming more expensive
– This is probably a long way from the old rule of supply and demand. Many of the competitors have long waiting lists and struggle to get enough cars. It looks like Tesla so far avoids that. Both Model 3 and Model Y have been what we must be able to characterize as favorably priced. They have attracted many customers precisely because of the prices. Then Tesla will probably consider going there so that they can turn it up, without it having to affect sales much, Benny says.
– So this is not about the fact that it has become more expensive to produce the cars?
– Only Tesla probably knows the answer to that. But in general, there is reason to expect that many cars will be more expensive in the future. These were turbulent times even before the war in Ukraine. Now the price of oil has risen sharply, as has the price of many raw materials. Of course, this also affects car manufacturers. Many have had to reduce their production. This means that the factories are not operated optimally. This in turn increases the cost per produced car. In many cases, we have to reckon with these costs being passed on to car buyers, says Benny.
Used car: The only thing that helps is to cut the price – a lot!
– The SUV Tang from Chinese BYD is one of the cars you can get almost “during the day” in Norway now.
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Get a car quickly – or wait a long time
In Norway, we now see a clear distinction between car brands that can deliver cars quickly – and those that operate with waiting lists of up to a year and a half, some even longer. This naturally has a strong effect on the competitive situation.
– Tesla has long been able to deliver cars quickly. The same applies to several of the Chinese car brands that have come to Norway in recent years. These also generally offer a lot of car for the money. That, together with a short delivery time, is of course a big advantage as the market looks right now, Benny concludes.
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