Tesla is shifting around the price of their options again, this time dropping the price of paint on the Model 3 by $500 on all optional colors. Pearl white paint is still included with the base model car, but black, midnight silver, and blue now cost $1,000, with red costing $2,000.
Paint price remains unchanged on the Model S and X, at $1,500 and $2,500, respectively.
Earlier this year, Tesla switched the base color from black to white for Model 3, S, and X. Previously, pearl white paint had cost more than other paint options, but Tesla reduced that cost to zero while making black paint available as an additional-cost option.
Tesla had gradually been increasing the price of paint options since the Model 3 originally came out. In the beginning, red paint cost $1,000. It gradually crept up to $1,500, then $2,000, then $2,500.
The last time Tesla increased the price of red paint, they shared a little insight into the paint-shop process required for it. Red paint required the company to stop the whole paint shop to do a batch of red cars, and it “looks like an episode of Dexter,” according to CEO Elon Musk.
Now Tesla has decided to offer some relief to Tesla customers who want to get the (ed.: objectively best) red paint color and ease off on the price increases.
The drop comes near the end of a big year for Tesla, with Tesla attaining surprisingly high profits, smashing delivery records, and Tesla stock hitting record highs. But also, Tesla’s US federal tax credit is about to disappear at the end of this year, adding a price burden for prospective customers.
This credit looked like it might be renewed, until the White House stepped in, tipping the scales further in favor of massive existing subsidies for gasoline.
This could be an attempt by Tesla to help reduce the effect of that tax credit expiry. Five hundred dollars is a relatively small amount compared to the base price of the car, but it helps remove the sting of effective post-incentive prices going up by $1,875 at the beginning of the year.
That said, Tesla also raised prices on Model 3 by $500 last week, so this turns out to be kind of a wash on that front.
Tesla is also currently going through their usual end-of-quarter sales and delivery rush, trying to sell as many cars as possible before the year closes out.
Unfortunately, this price drop won’t help Tesla generate more demand before year’s end, as “estimated delivery” is listed as four to seven weeks on Tesla’s website. It’s possible some customers who order now will be able to take delivery by the end of the year, but it’s unlikely. Tesla also encourages customers to visit a store or their inventory site to find a car that can be delivered to them faster if they want to get in on the $1,875 tax credit available until the end of this year.
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