Cheapest Tesla Model Available in 2025

The Evolution of the Tesla Model 3

There was a time, not too long ago, when owning a Tesla was considered a luxury. The first-generation Roadster was a niche product, while the Model S and Model X set new standards for electric vehicles. Even the Model 3, which launched in 2016, took years to deliver on its promise of affordability for the mass market.

Today, the updated and refreshed Highland version of the Tesla Model 3 remains the most affordable model in the company's lineup. It is priced roughly $2,500 less than the Model Y crossover. However, it’s important to note that Tesla frequently adjusts its prices, so these figures are subject to change. As of now, the base Model 3 is the long-range, single-motor variant, costing $44,130 after destination and delivery fees.

When factoring in the available $7,500 EV tax credit (which will expire at the end of September 2025), Tesla advertises the effective price of the Model 3 as $34,990 (before a $1,390 destination fee). This “$35,000” price point was a key promise when the car was first introduced. However, the current Model 3 is far more capable than its earlier versions.

A Significant Upgrade Over Previous Models

For much of its lifespan, the RWD Standard Range Model 3 was the most affordable way to own a Tesla. When the base Model 3 was introduced in 2019, it had a driving range of just 220 miles and a claimed 0-60 time of 5.6 seconds. By 2024, Tesla made changes to the Model 3 lineup in the U.S., removing the standard-range version and lowering the price of the large-battery version to compensate.

Now, the Long Range RWD Model 3 has an EPA-estimated range of 363 miles and can go from 0 to 60 mph in 4.9 seconds. This represents a significant leap in both range and performance compared to earlier models. Additionally, the 2025 Model 3 includes numerous improvements over its predecessors, offering great value for the price.

The Future of Electric Vehicle Incentives

While the Model 3 currently qualifies for the $7,500 federal rebate, this incentive will no longer be available after September 2025. This change will affect not only Tesla but also many other eligible electric vehicles. There may be price reductions to offset the loss of the tax credit, but if you want to take advantage of the current offer, it might be wise to act soon.

Rumors of a New, Cheaper Tesla Model

Despite the Model 3’s affordability, there have long been rumors of a new, even cheaper Tesla model that would sit below the Model 3 in the lineup. Initially, speculation suggested this vehicle, likely called the Model 2, would be a compact city car. However, in the spring of 2024, reports indicated that this low-cost model had been scrapped.

Recently, Elon Musk revealed via Motor Trend that a more affordable Tesla is in the works—but it won’t be a completely new model. Instead, the plan involves selling a version of the existing Model Y with fewer features and a smaller battery, making it more budget-friendly. If true, this more affordable Model Y could arrive as early as this year. For those willing to compromise on range and comfort, this could signal the arrival of a new value-focused Tesla option.

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