why the small price increase marks the end of an era in France

By adjusting the price of its Model 3, now deprived of the maximum ecological bonus and its price attractiveness, Tesla marks the end of an era that will have lasted 1 year and two months.

Model 3 head

Testa Model 3 // Source : Charlie Deets sur Unsplash

In not even two weeks, the American manufacturer Tesla has twice increased the French price of its electric sedan star, la Model 3. First from 1,190 eurosraising the final score to 44,990 euros, ten euros close to the fateful threshold of 45,000 euros which deprives a electric car from ecological bonus maximum of 6000 euros.

The fact is that such a price cut short all desires for paid options: the slightest addition, whether it be 19-inch Sport rims or a black exterior color for example, catapulted its price above 45,000 euros . In this case, government aid is then limited to 2000 euros.

The gap widens with a further increase

But a few days later, Tesla did it once more and decided to shake up its ultra-aggressive pricing strategy. Tesla did itto the chagrin of many, by adding 2,000 euros to the final bill: the Model 3 Propulsion today costs 46,990 euros and turns its back on the famous 6,000 euros in aid, which it was able to benefit from for 1 year and 2 months .

January 2021 July 2021 Mars 2022 11 mars 2022
Price excluding bonus 43 800 euros 43 800 euros 44 990 euros 46 990 euros
Ecological bonus awarded 7 000 euros 6 000 euros 6 000 euros 2 000 euros
Final fare 36 800 euros 37 800 euros 38 990 euros 44 990 euros

This change might have relatively significant consequences in the short term. Between an electric car bought for 44,990 euros following the application of the ecological bonus of 2,000 euros and another sold for 38,990 euros thanks to a boost of 6,000 euros, the difference is considerable. And it must also be considered.

Tesla Model 3

Tesla Model 3 // Source: Frandroid

The acquisition of a connected or thermal vehicle is an important purchase in a lifetime, because the amounts are generally high. Here, Tesla might put off a number of motorists previously interested in buying a Model 3 Propulsion, which on the one hand is overshadowed, and on the other, gives a spotlight to competition.

Because the competition has just been organized in recent years. And if the Model 3 Propulsion offered so far one of the best, if not the best quality/performance/price ratio, this may no longer be the case today. Consumers’ eyes might very well turn to a certain Renault Megane E-tech.

Other attractive options

The French vehicle has received very favorable reviews from the press – we are the first – and has a range of arguments to convince the general public and tip the scales in its favor. It must be said: the price increase observed at Tesla completely enhances the advantages of a Mégane E-tech.

This last, in its Balance version EV60, can be used for both short and long journeys, all at the price of 34,200 euros following the application of the maximum ecological bonus. Its 130 kW charging power – which less expensive versions do not have – also reduces the time spent at a terminal.

Tesla Model 3

Tesla Model 3 // Source : Unsplash – Stefan Lehner

Certainly, the Tesla Model 3 recharge even faster. Admittedly, they have at their disposal the complete and devilishly efficient network of Superchargeursas well as effective driving aids systems, but nevertheless, around 10,000 euros now separate a Propulsion model from a Megane E-Tech compatible with fast charging.

The second-hand market might also encounter a new dynamic, where more affordable Model 3s will surely find takers more quickly. Until then, it was still preferable to turn to a new model, in particular because of the new puce AMD Ryzen integrated into the infotainment system.

The system of resale abroad will also become less attractive, as the price difference becomes less significant between France and other European countries. Future sellers will also be able to better negotiate the buyback price thanks to this change. More generally, this price increase is good news for current Tesla owners.

France, a still competitive market

Except that the current tariff schedule will perhaps calm certain enthusiasms and push users to take an interest in the occasion, without worrying regarding the performance of the system.

If we take a look at our Belgian neighbors, it should be noted that a Tesla Model 3 Propulsion purchased in France remains financially more attractive. Within the flat country, it is torn off for example at 50,990 euros. France therefore remains a competitive and interesting market for anyone wishing to invest in a Model 3.

Tesla Model 3: why the small price increase marks the end of an era in France

In the near future, we can also expect increases applied to the Long Autonomy and Performance models. The latter use LG batteries, of NCM composition (Nickel – Cobalt – Manganese). Gold, the price of nickel has recently skyrocketed because of the war in Ukraine.

Towards a drop in sales?

We might therefore naturally think that such a dazzling increase would have an impact on the final price of our electric cars, including the Model 3 Long Autonomy and Performance. Propulsion, for its part, relies on LFP (Lithium – Iron – Phosphate) batteries that are less expensive and nickel-free. Its price should therefore stabilize for a while.

In any case, it will be interesting to observe the number of Tesla registrations over the coming months in France. How much will this increase have an impact on its sales? Will the Californian group ride its wave of success as much? The bets are off, the dice are rolled. Place your bets, no more bets.

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