My perspective on the new mid-range Tesla Model 3



Today I give my opinion on the new Mid-range Model 3. Is it genius, or stupidity? Watch and find out!

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39 Replies to “My perspective on the new mid-range Tesla Model 3”

  1. M Oczakow

    Tesla & GM have already passed the 200K vehicle mark so the tax credits are pointless topic, it will be more interesting how they will price the vehicles once all tax credits are gone.
    It will also be interesting to see what happens once Tesla reaches market saturation in North America, will they try to upscale the cars at higher prices?, or will they try to sell more vehicles at slightly lower prices (i doubt they will go lower as they positioned themselves as Premium) Tesla 3s are in demand right now everywhere, and you can already see the voltures trying to rip people off, for ex. In Toronto there are a few brand new 3s listed on AutoTrader at full price even though they were purchased for $14K less (before Sept 2018) before the EV incentive was cancelled by Doug "The Idiot" Ford, Ontario's "NEW" premier.
    Coincidentally Ontario's our new "Bafoon premier" also cancelled the EV charging infrastructure expansion, the Ontario ZEV credits (with Cali & other states), along with child after school activities credit ($500/year), and a portion of the Child Daycare Assistance (for those that need it most, aka low income & single mothers).
    Can u guess what he did with the money from those programs?
    He subsidized gasoline prices with it to lower the price by 4-5 cents/litre (and he is so fucking proud of himself on twitter right now) by giving the money to all those "poor" "struggling" oil companies in Canada (u know the ones making Billions of profit every quarter), U know what all those struggling CEO making only 10-20million a year (200X more than avg Canadian), i feel for them, i mean how can they get by?, and their poor 16y old teen daughters simply can no get by with only one RangeRover or AMG mercedes, i mean that would be demeaning in their IVY-League snobby spoiled shit friends circles, and we simply can't have that.
    No all is lost for all Canadian's however, as Quebec still offers a decent EV incentive, but no one knows how long that will last.

  2. William Korb

    I wanted the long-range model, but we couldn't fit it in the family budget. The mid-range was enough of a discount to make the payments workable, so I ordered my Model 3 10 days ago, and per Elon's tweet, should get it prior to 12/31 (and hence, the $7.5K tax credit, which was the other deciding factor).

  3. V Broadnax

    I have to disagree with your comment about people waiting for the standard battery don’t have a high tax burden. My husband and I have a HUGE tax burden, yet my choice is to wait for the standard battery. People who have HUGE tax burdens (high income) may not ALL want or need long range or mid-range battery as they may have short commutes or other vehicles ( such as me) or don’t care about going from 0 to 60 mph in 5 seconds.. I can afford any of the options but only want to purchase what I need/want. I (and maybe many others) could definitely use the $7500 tax credit. It was my hope that people waiting for the standard battery have the same opportunity to take advantage of the $7500 tax credits as those who choose to purchase the other options.

  4. Twile D.

    I don't know if I agree with your logic that people who can only afford the $35k Model 3 will only have a tax burden of $3-4k.

    When searching for what a responsible amount of your income to dedicate to a car is, "Money Under 30" suggested you should spend no more than 35% of your income on a car. That doesn't mean 35% of your money should go into a car, but rather, take 35% of your annual income. That's about what your car should cost, unless you're super frugal or a huge car lover. Hey, that makes things easy. By this logic, a $35k Model 3 is a reasonable car for someone who earns $100k a year. Whether you're filing single or married, your tax burden is still well over $7500/year.

    Let's get another data point. An article on Interest.com from a few months ago suggests you should spend at most 10% of your income on car-related expenses. After crunching the numbers, their example of a household with a $53k/year income winds up with a $17,870 car. This comes out to 33.7% of their income for one year, suggesting that the "35%" guideline is not that unreasonable. So again, unless you're putting too much money into a Model 3 relative to your income (not judging, I know I'm doing it myself), you can probably take advantage of the entire $7500 tax credit.

    I get what you're saying, but in practice I don't think the numbers pan out.

  5. TRY to HELP you

    This is interesting. A family that "needs" the 7500 tax credit, I feel, do not exist. Just as you said, they will not be a family that has the liability that high in the first place also bee in "need". I agree with your points. I will not be surprised if they bring the LR RWD back…. So cool what the future is bringing.

  6. fatboy19831

    If you have less than a $7500 tax liability you probably should not be buying an 35k car. Many people that make well over $100,000 a year have zero desire to buy an 50k car. They would rather buy an 35k one. Especially as a second car.

  7. Ted Kidd

    People that "need" the tax credit don't make enough to be able to use the tax credit.

    Oop, that's where you were headed…

    Tesla has ALWAYS released expensive cars first. It's how they are able to exist. Some seem to not get this.

  8. Peter Stringa

    Matt, a few months ago I commented on your mirror looking habits. You responded something like nobody drives over 100 mph. My response was something like you never know if somebody does 130 miles/ 210 km per hour and that's why I look in my mirrors every few seconds……… A week ago I was driving on a regular road with three lanes on both sides, where 62 miles /100 km per hour is the limit. I was driving in the middle lane at around 65 miles per hour and was looking every few seconds in my mirrors. Suddenly, out of the blue 2 cars, one Ferrari and one very expensive Audi, were passing me in the left lane at a speed of over 130 / 210 km per hour. I almost had a heart attack and you know why? I never had seen them coming; I just missed them. ME as a former racedriver. ….What would have happened If I had switched lanes without noticing them???????????????? I know I would have been dead!!!!!!!! That's why I always look in the mirrors. You still miss things, but not as much as when you hardly use the mirrors.

  9. N C

    why should you ask your neighbors to subsidize your $45k car? Yeah, go knock on your neighbor's door and tell them how your autopilot, self parking, etc is saving the planet.

  10. Gilberto Pe-Curto

    I was hoping for a more globalwise comment/speech on the subject. But it is very US centered and on tax credits incdntives.
    I wished you would dive more into the strategic decision and on the confidence effect that will bring to people qho really want the 35000 usd car and if it doesn't come at the right time, will just move once more to an ICE car because of constant delays.
    Because I think it's not only about US, or is it ?

  11. bangser

    Any comment on MR RWD vs. LR AWD. Which are the only options today? Price gap is 10k! Which one would you go today?
    And: Did you hear any niose from the front motor at AWD test drive?

  12. Soj. H

    The fact that the top speed of the standard range version is 130mph while that of the mid range is only 125mph leads me to think that the mid range version is only here temporarily to boost the Q4 sales. I think Tesla will go back to the line up of SR, LR, AWD-LR, and P-AWD-LR.

  13. MaxKito2

    What "if" Tesla could offer its lowest M3 version with 310 miles range and strip the car off from all of its other expensive technology features, at the so long "Promised" price range of "base 35K" some people may be satisfied or feel ok with it.

    If with time, financial constrictions becomes more flexible for the customers, leave it up to the customer to activate for example: Auto pilot features and whatever else they have on the menu and charge accordingly.

    You know, in my opinion Tesla is just a very expensive EV and the market for this cars is just for those that can afford it period.

    I personally can't, 25k may not get me into a Tesla, but it certainly can get me far in a fully loaded Honda civic or something similar… This is just a hypothetical example, so don't sharpen your fork tongues and insult me for giving an idea or opinion …. lol

  14. Brad Koenig

    The midrange M3 has 50 miles less, and is actually a slightly slower car when comparing 0-60 times with the RWD LR M3. The additional miles and additional performance is worth it to some.

    As a side note, are you planning to do a video discussing the paint protection film that you recently had installed? Would be interested in hearing your thoughts on cost vs benefit, what areas you had it installed on, etc.

  15. kens97sto171

    I wonder how this complicates things from a manufacturing standpoint. instead of one battery with a few options in the car you are going to have three batteries with a few options. I also wonder if it's a software limitation in the battery size as they did with the model S 60.
    Personally if I'm spending this kind of money. I should be able to get any combination I choose long range and rear-wheel drive or all-wheel drive.
    That's obviously possible because they make both versions. I don't understand the difficulty in continuing to offer the long-range battery with only rear wheel drive. unless you live someplace where it snows you probably don't need the all-wheel drive anyway

  16. IMHO

    Tesla shaved $4000 off the price ($49k down to $45k), but is this really a LR RWD with a few less cells, or a Standard Range with a few added cells?

    The original standard range was supposed to do 130 mph, 0-60 in 5.6 seconds.
    This “midrange” version says it can do 125 mph, 0-60 in 5.6 seconds.
    The long range version, 140 mph, 0-60 in 5.1 seconds.

    We know the original SR battery used 31x 2170 cells per brick, and the LR has 46x cells per brick,
    We know the LR batter is 1200 amps, and we can assume the SR battery was 800 amps.
    Do both cars use the same inverter and cable size, even though the amps needed are much different? If so, which size does this new version get?

    We know the the LR RWD is quicker, faster, heavier than the SR RWD, which means it does pull more amps. We would expect a LR RWD which is missing a few cells to do 0-60 in 5.3-5.4 seconds, and top speed 135 mph. So why doesn’t this midrange car do that?

    So my prediction is Tesla has taken the SR model 3, with a lower rated inverter and possibly smaller power cable, and merely added about 5-7 cells per brick for $5000, instead of the 15 cells per brick, PLUS the upgraded inverters/cables to handle the 50% extra current, which they charged $9000.

    If this is true, then the midrange version is a bad deal, but Tesla is holding the EV tax credit over US buyer’s heads.

    Let’s compared this to iPhone memory pricing. 64 GB base, add $150 and get 256 GB (192 GB increase) and add another $200 for 512 GB (256 GB increase) with no other hardware difference.

    Tesla 50 kWh base, $5000 for 60 kWh (10 kWh increase), $4000 more for 75 kWh (15 kWh increase), plus some other hardware differences.

    I hope Ingineerix gets one of these midrange and takes it apart early so buyer’s can know if they are getting screwed.

    We also don’t know how long the warranty is on this new version. Tesla needs to make that public. We know the 50 kWh is 100k miles and the 75 kWh is 120k miles. Warranty miles do have a dollar value.

    I would say if you are on the fence, get off the fence, get a third job, buy the 75 kWh version while it’s still available “off menu”, and the extra job will help you get a $7500 tax burden.

  17. gadgetperson

    In my humble opinion, you can’t be much more off base with your analysis of tax credits or what people can “afford”. As a person who prepares taxes for people for free, I have met many people who can afford much more than they spend for cars, homes, etc. For many of them, they would probably not consider purchasing a Tesla, regardless of price. The issue of the tax credit is to allow Tesla to establish themselves in the market place, move people to a cleaner energy form, etc. despite the higher cost of a Tesla. For marketing purposes, by selling a lower priced car Tesla is able to attract more people and attain more universal acceptance of their vehicles. As you know, this business has not been profitable for Tesla to date and they are no doubt fearful that with the absence of a tax credit, they will not be attractive enough to a larger customer base – witness for instance the new Supercharger offers to attract attention and customers. I think that despite getting added “profits” for early sales of premium models, Tesla has hurt their image to the average consumer. Many feel cheated that the $35K car has not happened and that they could not take advantage of the tax credit and are turned off by the brand. Believe me, I have heard that from more than one person. Perhaps on your ivory tower you are not listening to the masses – which Tesla needs if they are to survive. Hopefully in the future, Tesla will offer the basic car with a list of options including battery size, AWD, RWD, Performance AWD, wheels, colors, deluxe interior, Enhanced Autopilot, Autonomous driving, etc. with all options available. Ideally customers will be able to configure what they want from the menu and not be restricted to what Tesla decides to offer on a given day. For many prior purchasers of Teslas, 210 or 260 miles were plenty and they paid over $100,000 for those cars. 310 mile range is great, but many don’t need it. As you stated, perhaps people will choose to take the 260 mile option and with the savings purchase the Enhanced Autopilot. That is not necessarily an afford issue but rather a utilization issue. If Tesla wishes to appeal to the masses and not irritate purchasers, they need to offer all of the options – all of the time. Personally I ordered the Long Range RWD vehicle with Enhanced Autopilot, a premium color and special wheels but decided to cancel it since I don’t need another car until next June. I will lose the $3750 credit but a good part of that would have gone towards paying for my remaining lease on my current vehicle and the Tesla would have sat in a garage for 6 months (lost warranty time). I’ll take my chances with what is being offered next year. If the combination that I want is not offered, Tesla will lose a sale. They are not the only car company in business and more electric vehicle options are coming. One other thing they should be working on is leases. Personally I’ve enjoyed leasing my last few cars and getting a new one every three years. The absence of a leasing option is hurting Tesla. Thanks for your videos.

  18. Golf Pilot

    Tesla is getting a bunch of people to buy options they probably wouldn't buy. It works for everyone because Tesla can sell more options on early production vehicles and the consumers get a slightly more featured car for the same price.

  19. Mike B

    Ive read one of the bottlenecks is battery cell production and offering a lower range will allow them to ramp up production more with the same battery cell production ?

  20. siskiyou

    I love the Range Freak version of the Model 3 (RWD + LR). I wanted an EV I could still go anywhere in, in the winter, with 100,000 miles of degradation – this one should be it. The money I saved will go to snow tires.

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