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Tesla increases price of Model 3 Dual Motor AWD again

Tesla can’t seem to make up its mind when it comes to the price of Dual Motor All-Wheel-Drive option of the Model 3.

The automaker is now changing the price for their third time in a few months – making it 20% more expensive at $6,000.

When Tesla introduced the Dual Motor option on the Model 3 earlier this year, it set the price at $5,000.

It was surprising to many reservation holders because CEO Elon Musk had previously said that the option will be less expensive than it was on Model S, which was also $5,000.

A few weeks later, Tesla updated Model 3 options and pricing, which resulted in a welcomed price reduction to $4,000 for the Dual Motor version.

In August, Tesla surprisingly brought the price back to $5,000.

A month later, the automaker is again increasing the price of the option, according to an updated version of the Tesla Model 3 online configurator tonight:

The Dual Motor Long Range version now starts at $55,000 – $6,000 more than the rear-wheel-drive Long Range battery pack version.

Interestingly, Tesla didn’t increase the price of the Performance version, which is equipped with the same dual motor powertrain.

Tesla issued the following statement about the change:

“We occasionally adjust pricing and available options to best reflect the value of our products and to streamline our manufacturing operations. The adjustments made today are the latest example of that. Model 3 Dual-Motor All-Wheel Drive is now a $6,000 option, and beginning September 13th we will be removing two paint options.

The best way for customers to check the current pricing and packaging options is to refer to the online configurator.”

We reported earlier today about Tesla eliminating some paint options to increase production efficiency.

During the conference call for the company’s earnings results last month, Tesla executives said that about 50% of Model 3 buyers are choosing the Dual Motor option when accounting for both the Performance and non-performance versions.

Electrek’s Take

I wasn’t a fan of bringing the price back to $5,000, but I understand that Tesla needs to increase the gross margin of the Model 3 and the demand for the option was quite high.

Now I think that they are pushing it at $6,000.

At $5,000, the option added more value to the Model S since it actually increased the efficiency and range of the car.

It’s not the case with the Model 3 and yet, the option is even more expensive.

The only good news is that Tesla strangely didn’t increase the price of the Performance version, which is now a better value at a $9,000 difference with the regular dual motor.

What do you think? Let us know in the comment section below.

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