Tesla's Model 3 Now Costs Less Than the Average New Car

By Kevin Armstrong
Tesla's Model 3 now costs less than the average new car
Tesla's Model 3 now costs less than the average new car
Tesla

For years, auto investors have placed bets on when electric cars would reach price parity with their combustion counterparts. With Tesla's recent price cuts and government incentives, the company has now achieved this milestone for the Model 3. A Model 3 is now less than the average price of a new car, making it a more affordable alternative for drivers looking to transition to electric or upgrade their vehicle.

The Price Gap Between EVs and Gas Cars

According to Bloomberg's analysis, the price gap between the Model 3 and the average new vehicle sold in the US has never been wider. A Model 3 is now $4,930 less than the average price of a new car. Without credits or fuel savings, the sticker price ($42,999 USD) now sits $800 below the cheapest BMW 3 Series, one of its closest competitors.

While Tesla is reducing the price tag, the cost of gasoline-fueled cars has gone in the opposite direction. The average cost of a new vehicle has risen more than $10,000 since the beginning of the pandemic, reaching $47,920 in January. This rise is driven by a shortage of computer chips, raw material inflation, and car manufacturers' decisions to keep inventories low and prices high while investing heavily in developing electric cars.

Expanding EV Market

Tesla's price cuts have sparked a ripple effect among other automakers. Ford has slashed the price of its electric Mustang Mach-E, while Lucid Group offered $7,500 discounts, and Rivian Automotive announced layoffs. In addition, General Motors is slated to launch electric versions of its Chevrolet Blazer and Equinox SUVs later this year, right in the middle of America's first-ever EV price war. Meanwhile, the Model Y has also seen a substantial price cut of $13,000 earlier this year, making it the third-best-selling SUV in the US, behind the Toyota RAV4 and Honda CR-V.

Affordability Driving EV Adoption

That price tag may decrease even further when the refreshed Model 3 appears. Reuters reported that Project Highland would go into production in Shanghai in September. The goal of the refreshed Model 3 is to increase efficiency and cut production costs. We already know Tesla is eliminating the wood trim in the updated version, a cost-saving and environmentally friendly move. While the changes could bring the price down, it is worth noting that when Tesla refreshed the Model S and Model X, the prices jumped by 12% and 15%.

The increasing affordability of Tesla's vehicles may drive the adoption of electric cars and contribute to the growth of the EV market. If Tesla can continue to offer price cuts, it could attract more new buyers as the company ramps up production at its new plants in Austin, Texas, and near Berlin, while expanding capacity in Shanghai. There's never been a better time to buy a Tesla.

Tesla's Upcoming Model Y Performance Spotted With Camouflage: What's New

By Karan Singh
Carscoops

Just like how Carscoops spotted the refreshed Model S, they also spotted the refreshed Model Y, and this time, it was likely the Performance variant.

When Tesla launched the Launch Edition of the refreshed Model Y, they opened the floor to orders for the Rear-Wheel Drive (later introduced to the U.S.) and All-Wheel Drive Long Range variants, but not for the Performance model. This was the same strategy that was used with the refreshed Model 3, whose performance version launched months after the new Model 3.

We’ve already seen some covered-up refreshed Model Ys at Giga Texas, so it seems almost certain that Tesla is in their final evaluation phases prior to this variant’s launch.

With that said, let’s dive into what we saw at the ‘Ring.

Minor Exterior Updates

The Nürburgring prototype was fully wrapped in a white and black camouflage, but thanks to the crisp photos, we got some detailed looks at the exterior of the vehicle. A new and more distinct spoiler is on the rear hatch, similar to the previous generation’s Performance model. That spoiler is likely carbon fiber and will also likely make its way to the Tesla store in the future as a cosmetic add-on for non-Performance buyers.

That spoiler is super noticeable from the side.
That spoiler is super noticeable from the side.
Carscoops

Carscoops also noticed that the vehicle was sitting noticeably closer to the ground than the refreshed Model Y Long Range. We’re expecting Tesla to include an adaptive suspension system, similar to the one that arrived with the Model 3 Performance. These adaptive suspensions can adjust to driver and road input in real-time with adaptive damping.

Interestingly, the front fascia looks relatively unchanged, lacking the dedicated brake cooling ducts that the Model 3 Performance has.

Powertrain

As usual with Tesla, we haven’t heard anything in terms of official specs on the powertrain for this Performance variant, but we can make some good guesses. The Model 3 Performance and Model Y Performance usually sport the same amount of horsepower, so we’re guessing that the refreshed Model Y Performance will also have 510 HP. That gives it about a 3.2-second 0-60 mph (0-100km/h), which is a generous upgrade from the previous generation’s 3.5-second speed at 470 hp.

Wheels & Brakes

On the ‘Ring, the refreshed Model Y Performance is sporting new alloy wheels that are reminiscent yet slightly distinct from the Model S Arachnid wheels. These new Performance wheels also look like they’re a staggered setup, similar to the rest of Tesla’s performance lineup, which means wider rear wheels for better traction and handling. Alongside the red brake calipers, we expect that there are larger, performance-optimized brakes to handle track days.

Pretty Arachnid-looking wheels. We like them!
Pretty Arachnid-looking wheels. We like them!
Carscoops

Performance Launch Date?

Given the fact that this is only the second time we’ve seen the refreshed Model Y Performance, we expect the launch to be a couple of months out. Tesla is still likely working on optimizing the adaptive suspension characteristics and fine-tuning Track Mode 3.0 for the vehicle, and hopefully also designing some unique Performance seats to go with it all.

We’d expect Tesla to launch this variant sometime in late Q3 or early Q4 2025, which is still a few months away. Perhaps the new Model S and Model X will also launch alongside it? That may just make a great Tesla event.

Tesla Model S Refresh Spotted With Front Bumper Camera at Nürburgring [PHOTOS]

By Karan Singh
CarScoops

Carscoops, which keeps a close eye on racetracks around the world for new models in testing, has spotted what appears to be the refreshed Model S at Nürburgring in Germany. Tesla is testing out the new Model S, which is likely a Plaid, on the track. Tesla was taking this new Model S for some laps around the track, which serves as an excellent testing ground for high-performance vehicles like the Model S Plaid.

The updated Model S was seen wearing some white and black camouflage over the front and rear, but from the photos that were provided, the changes appear to be relatively minimal and focused on aerodynamics,  at least on the exterior.

Not a Juniper-Level Refresh

Tesla’s VP of Engineering, Lars Moravy, mentioned that Tesla was working on updating the Model S and Model X. However, he didn’t quite say just how much of a refresh was on its way. Lars’ comments were very general, and he didn’t mention any details.

Based on what we’ve observed at the ‘Ring,’ this Model S refresh doesn’t appear to be a full-blown Model Y Juniper level refresh, which included a light bar, new headlights, and other substantial changes to the rear and front of the vehicle.

New Front Bumper Camera

At first glance, the front fascia looks remarkably similar to the existing Model S, but there are a few key differences. 

First up is the addition of a new lower lip spoiler mounted at the very bottom of the front bumper. These spoilers help to improve aerodynamic efficiency and downforce at high speeds, which is entirely appropriate for a vehicle that thrives on tracks like the Nürburgring.

On the other hand, the distinctive headlights and eyeliner-style running lights appear to remain intact, keeping the overall look of the front relatively similar. Tesla has kept the black space with the Tesla logo at the front of the vehicle. While it’s difficult to tell on the front shots, you can tell it’s still there from the side shots.

Another little item was the return of the front bumper camera. Tesla is shipping both the refreshed Model Y and the Cybertruck with a bumper camera, so it isn’t surprising to see this, but it is one of the best indications that this is a new vehicle being tested.

Can you spot the little nub with the bumper camera?
Can you spot the little nub with the bumper camera?
CarScoops

Wheels & Brakes

The prototype was spotted sporting some new alloy racing wheels that bear a distinctive resemblance to the Photon wheels that ship with the Model 3. If you take off the aero covers from the Photon wheels, they look exceptionally similar. This seems relatively odd, as Tesla’s top-end performance wheels are usually distinctively different from other wheel options. 

We also saw the currently-available Arachnid wheels on the same Model S being tested, on the way to and from the track. Tesla likely switched out to these new wheels to test their performance and handling characteristics on the track.

The original Arachnids on this Model S tester
The original Arachnids on this Model S tester
CarScoops

Rear End

From the available images, the rear end of this new test vehicle appears to be largely unchanged. The tail light design, bumper shape, and overall profile look essentially the same as today’s Model S, which means that Tesla’s work has likely focused on the front of the vehicle.

The rear diffuser looks a bit different, but seems essentially the same.
The rear diffuser looks a bit different, but seems essentially the same.
Not a Tesla App

What Else?

With the exterior changes appearing to be relatively minimal, it’s plausible that more significant updates could be found within the cabin. Tesla could be working on interior updates that help bring the new Model S more in line with the new Model 3 and Model Y.

A focus point for Tesla may be the Model S Plaid’s powertrain. The S Plaid used to hold several records, at least until the Lucid Air Sapphire and Rimac Nevera came along to steal the trophies. Tesla could be improving both the front and rear motors, as well as the other portions of the drivetrain needed to grab a podium finish once again, which would be just as exciting as Plaid+ being announced again.

Given the minimalistic changes to the exterior, it seems unlikely that Tesla has made drastic changes to the vehicle as a whole, though. We don’t expect this updated version of the Model S to launch with Steer-by-Wire or any of the other new technologies pioneered by the Cybertruck. Although Tesla says they will be used in future vehicles, even Juniper launched without these Cybertruck upgrades.

Tesla could still surprise everyone, as is their habit with vehicle announcements, but we’re expecting a slightly faster, slightly cooler-looking Model S at this point.

Side-on with the refreshed Model S
Side-on with the refreshed Model S
CarScoops

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