Tesla Model 3 Standard Range Still Exists And Has Killer Lease Deal

06 Oct 2024 by Brooke Crothers · Forbes

LONDON, ENGLAND - MARCH 28: A Tesla Model 3 fully electric EV car is displayed during the Everything ... [+] Electric London 2024 at ExCel on March 28, 2024 in London, England. The show, designed to inspire people, includes an array of visitor attractions, dozens of 'live sessions' and an exhibition of hundreds of companies, electric vehicles of all types, and a large selection of home energy options. (Photo by John Keeble/Getty Images)Getty Images

Tesla has streamlined the Model 3 lineup but still offers a great lease deal on the Standard Range trim.

Don’t write off the Standard Range yet — killer lease: While the Standard Range has been cut from the Model 3 landing page, it still exists on the new inventory page. And if you opt for a Standard Range Model 3 lease, it’s a solid deal offering — depending upon the configuration — a lease of $263/month versus $389/month for the Long Range Model 3. I confirmed this with a Tesla salesperson. With a lease, the Standard Range falls under the so-called “lease loophole” that includes the $7,500 incentive.

It’s confusing: by removing the Standard Range from the Model 3 landing page (which is separate from the new inventory page), Tesla is cleaning up its lineup. Yes, it can be confusing but with a straight purchase the Long Range RWD Model 3 is in fact cheaper because of the $7,500 federal tax credit, which doesn’t apply to the Standard Range. Again, that’s with a purchase not a lease.

The Standard Range Tesla Model 3 is still available on new inventory page and includes a $7,500 ... [+] lease incentive.Credit: Tesla

What’s going on? The MSRP can be misleading. “On the surface, Tesla is removing its lowest MSRP model (Model 3 Standard Range Rear-Wheel Drive); however, with EVs, MSRPs only tell part of the story,” Kevin Roberts, CarGurus Director of Economic Intelligence, told me. This is due to changing content rules, he said.

The catch is the Inflation Reduction Act requires domestic battery sourcing for critical components and materials and the Standard Range Model 3 doesn’t meet those requirements. "We’re continuing to see the impact of content sourcing rules and tariffs on the evolving EV ecosystem, this time affecting what models automakers offer to consumers,” Roberts said.

The IRA helps the buyers who need it: Going forward, the rationalized model lineup helps the buyers who need the most. "This move likely helps profitability for Tesla, is cheaper for most consumers, and would likely only negatively impact the model options for higher-income households who wouldn’t qualify for the tax credit in the first place,” according to Roberts.

Don’t forget the used market: And the Standard Model 3 is available on the used market at even lower prices. “And for those looking for the standard Model 3 option, there are plenty available on the used market at affordable price points. Currently, the average price of a used Model 3 is $25,600,” Roberts said.