Purchasing your first electric vehicle can seem daunting given all the options out there. When it comes to EVs, Tesla tends to be top-of-mind for many buyers. Known for sleek design and impressive performance, Tesla does have reputably high prices on some models. But is there a Tesla option that fits within an average car buyer‘s budget?
As an EV enthusiast myself, I‘ve done extensive research into the Tesla lineup. In this comprehensive 2,500+ word guide, I‘ll overview the pricing across Tesla models, share insights on where you can find savings and provide recommendations for the most affordable Tesla available today.
Tesla Model Lineup and Base Pricing
First, let‘s examine Tesla‘s current slate of vehicles and where they sit price-wise in their most basic configurations:
| Model | MSRP Starting Price |
| Model S | $94,990 |
| Model 3 | $42,990 |
| Model X | $109,990 |
| Model Y | $54,990 |
Right off the bat, we can see that the Tesla Model 3 stands out with a significantly lower starting manufacturer‘s suggested retail price (MSRP) versus the other available models.
Whereas the premium Model S sedan and Model X SUV are priced more akin to high-end Mercedes, BMWs or other luxury vehicles, the Model 3 sits in more affordable compact/mid-size sedan territory. And while the Model Y crossover does still represent one of Tesla‘s lower-cost options, the Model 3 edges it out as the cheapest Tesla you can buy new in 2023.
Tax Credits and Incentives Reduce Costs Further
It‘s also worth noting that federal tax credits and state/local incentives can knock the entry price of a Model 3 down even lower.
As part of the recently passed Inflation Reduction Act, buyers are eligible for a $7,500 federal tax credit for new EV purchases meeting battery component sourcing requirements. The Model 3 qualifies for this full incentive amount, reducing your effective cost to around $35,500.
Additional state-level rebates like California‘s $2,000 CVRP further sweeten purchase deals in qualifying regions. The affordability equation changes dramatically thanks to these policy supports aimed at accelerating EV adoption.
Used Tesla Values Stay Strong
When discussing Tesla‘s affordability, it helps to understand resale values across models. The good news? Used Teslas tend to hold their value exceptionally well compared to most other vehicles.
According to Kelley Blue Book estimates, a 2019 Model 3 in excellent condition retains a value of approximately $35,500. Typically, you can expect around 10-18% depreciation relative to MSRP even for 5+ year-old Tesla models.
| Model Year | Average Used Value | MSRP When New | Depreciation |
| 2019 | $35,500 | $42,900 | 17% |
| 2018 | $33,800 | $49,000 | 31% |
| 2017 | $28,000 | $44,500 | 37% |
The caveat here is that buying used does introduce more uncertainty around critical components like battery health. More on what to watch for there later. However, if you don‘t mind higher mileage and the pre-owned route offers strong potential savings on Teslas built since around 2018 onward.
Model 3 & Model Y Offer the Most Bang-for-Your-Buck
When comparing capabilities across Tesla‘s lineup, you may be surprised at how few compromises you‘ll make opting for the more affordable Model 3 or Model Y versus pricier alternatives.
Range and Efficiency Continue Improving
The Model 3‘s EPA-rated 272 miles of range on a full charge actually exceeds the Model X. And while the premium Model S nudges ahead at 405 miles, real-world driving rarely demands over 250+ miles between charging stops. Unless you road trip extensively without reliable charging access, the Model 3 checks the box here.
Tesla also continues making battery tech enhancements almost silently via over-the-air updates. Recent examples improved regenerative braking efficiency to squeeze more range from the same battery capacity.
And benchmarks from organizations like Consumer Reports peg the real-world max range of a 2022 Model 3 Long Range at 340 miles – handily beating the official rating and demonstrating efficiency strides.
Performance Still Delivers Thrills
It also delivers exhilarating performance with a 0-60 mph time as low as 3.1 seconds in its Long Range configuration. The compact sedan form factor enhances nimble handling as well. You won‘t be left wanting for thrills behind the wheel.
In fact, the Model 3 outguns its pricier siblings in some metrics. It bests both the Model X and Model S Plaid in Consumer Reports track testing, posting lap times several seconds quicker thanks to better weight balance and chassis dynamics.
Utility Doesn‘t Fall Short
In terms of passenger capacity, the Model 3 squeezes up to 5 adults comfortably. The Model Y crossover does offer a bit more headroom and cargo space, but not drastically so. For small families or couples, the Model 3 meets needs.
With 23 cubic feet of cargo area with the rear seats up (expanding to 57 cubic feet seats folded), you‘ll be surprised at how much gear it swallows. The lower ride height does demand a bit more leaning in to load items but doesn‘t hamper utility much relative to small SUVs.
Tech, Safety and Charging Access Don‘t Skimp
Being the most affordable Tesla does not equate lacking features either. The Model 3 boasts the same clean, modern interior design with the excellent central touchscreen interface. Standard Autopilot driver assistance offers lane keeping aid, adaptive cruise control, automated parking and more – complementing the 5-star safety rating.
And arguably most valuable of all is tapping into Tesla‘s vast proprietary Supercharger network across the United States with your Model 3. That provides peace of mind for longer journeys along with time and cost savings en route. No other automaker can claim charging infrastructure that expansive yet.
For context, the nearly 1,400 Supercharger stations with over 16,000 individual Superchargers deliver significantly more convenient and faster charging than alternatives. Tesla advertises 15 minutes plugged in adding roughly 150 miles of charge. Competitors like Electrify America max out at around 20-30 miles added per 10 minutes charging.
Owning a Model 3 Costs Far Less Than Gas
Taking into account energy costs, maintenance, and tax incentives over a 5-year ownership period, choosing an EV like the Model 3 pays dividends versus traditional gasoline vehicles.
According to Kelley Blue Book 5-Year Cost to Own data, you would spend an average of $43,726 fueling and servicing a compact luxury SUV like the Audi Q5. Compare that to $36,083 for a Tesla Model 3 in the same segment – saving nearly $7,650.
When accounting for factors like lower electricity costs per mile compared to gas pricing, drastically fewer maintenance items without an engine or oil changes, and potential tax incentives, the Model 3 wins on overall affordability.
| Model | 5-Year Fuel Costs | 5-Year Maintenance Costs | Total |
| Audi Q5 Premium | $15,ipped | $28,122 | $43,726 |
| Tesla Model 3 | $5,961 | $30,122 | $36,083 |
The fuel bill difference of over $9,000 after just 5 years makes a compelling case around choosing electric.
Buying Used? Watch for These Warning Signs
The compelling value doesn‘t end with just new Model 3s either. As mentioned earlier, you can save even more buying used without the typical level of depreciation incurred. Just make sure to have a mechanic you trust do a pre-purchase inspection looking for the following:
- Battery degradation – Should still have 70-80% of original capacity in good shape
- Tire condition – Rears may show accelerated wear from torque
- Brake pad thickness – Performance models eat through them quicker
- Suspension and drivetrain – Clunking noises or leakage points to issues
- Accident damage – Panels not lining up properly are a clue
For the battery specifically, dig into diagnostic tools like Tesla‘s Battery Management screen for breakdowns on nominal pack capacity over time based on maximum voltage. Around 30,000-50,000 miles you may see 5-7% deterioration, but 20%+ degradation strongly hints at a pack needing replacement sooner than later.
Newer Model Years Offer Enhanced Hardware
It can also be worthwhile paying a bit more upfront for newer Model 3 model years that offer longer 8-year/100k-150k mile battery warranties and added hardware like double-paned glass for noise reduction.
Each vehicle iteration benefits from technology and build quality improvements. Over the Model 3‘s life, upgrades like switch from manual to powered trunks, center console enhancements, new seat materials, and faster onboard charging capabilities all enhanced appeal. Test drive multiple model years to feel the changes for yourself.
But even with higher mileage, EVs generally require less annual maintenance than gas vehicles without oil changes, spark plug replacements and more.
Model 3: The Clear Budget Tesla Winner
When tallying up the complete value proposition, the Tesla Model 3 emerges as today‘s most affordable EV from the automaker – both new and used.
The combination of an attractive starting price below $43K, lower depreciation resisting time, ample range for daily needs, surprising utility and top-notch performance for its class make a very compelling case. Plus, that Tesla badge grants access to leading infrastructure and technology.
For the eco-conscious driver wanting a taste of the Tesla experience on a budget, the Model 3 checks all the boxes. And with Tesla confirming Model 3 production will continue years after Model S and Model X wind down, it seems poised to remain the entry-level gold standard.
tempting Alternatives Coming Down the Pike
As more automakers expand EV offerings and charging compatibility, there will be no shortage of tempting alternatives on the horizon either. Initial pricing details trickling out around upcoming EVs like Hyundai‘s Ioniq 6 sedan and Kia‘s EV9 SUV concept suggest they may eventually undercut the Model 3 slightly.
But In 2023, none yet dethrone the Model 3 as the cheapest Tesla available for discerning drivers embracing electrification. Until competitors can commit to matching the Supercharger network accessibility in more remote locales, Tesla maintains an infrastructure edge as well.
Charging Your Model 3 at Home
While the Supercharger network enables longer road trips in the Model 3, most owners rely on home charging for their daily needs. That simply requires routing the included Mobile Connector to a 120V household outlet.
But investing $400-500 in a higher-powered Tesla Wall Connector allows you to cut charging times significantly. Installation runs around $1,000-2,000 depending on your home‘s electrical panel proximity to the preferred garage parking spot.
I recommend the Wall Connector route for roughly 4 times faster charging without upgrading your home service panel. The 32 amp maximum draws about 7.7 kW, replenishing 45+ miles of range per hour. Compare that to just 10-15 miles recovered per hour on the stock 120V mobile solution.
You can also inquire with your utility provider about special time-of-use rates for EV charging that reduces costs to just a few cents per kWh in the middle of the night versus peak daytime rates. Smart scheduling helps slash your bill.
| Charging Method | Charge Speed | Cost Per Hour |
| Mobile Connector 120V | 12 miles/hour | $1.80 |
| Wall Connector 240V | 45 miles/hour | $0.75 |
I live in California and take advantage of a special EV time-of-use plan from 10pm-6am charging at $0.21 per kWh – 3x less than the daytime rate!
Model 3: Still the Cheapest Tesla Years Later
When I purchased my Model 3 over 3 years ago, it already showed all the ingredients of a practical yet exhilarating EV delivering great value for money. As production ramped up and Tesla refined designs further, those ownership experiences have only improved.
The Model 3 remains the most affordable way into Tesla ownership, with the lowest purchase price and ongoing costs of any model. For my household, we actually opted to replace our aging minivan with the Model 3 rather than some equivalent ICE crossover vehicle. The lower maintenance, smooth performance and charging conveniences perfectly suit a small family lifestyle.
The Model 3 manages to balance nicely between upscale design outside and in while maintaining approachable pricing that opens the door for more households. As the options in the EV market continue expanding in the coming years, the Model 3 looks to hold strong as that "budget" Tesla keeping aspiring owners dreaming.
