What Happened to the $35,000 Tesla Model 3 and How Do Recent Changes Affect Shoppers?

The $35,000 Tesla Model 3, once touted as the key to affordable EV ownership, is now significantly harder to purchase, available only by phone or in-store, as Tesla streamlines its lineup to focus on higher-trim models, introduces leasing with no buyout option, and makes its Autopilot system standard.

The landscape of buying a new Tesla Model 3 shifted dramatically in early 2019. The promised entry-point to the brand, the $35,000 Model 3 Standard, has been removed from the online configurator. Instead, Tesla is directing shoppers toward the Model 3 Standard Plus, which starts at $40,700, and has bundled its semi-autonomous Autopilot system as standard equipment across the board. Furthermore, the new Model 3 lease program explicitly excludes a purchase option at the end of the term, a significant departure from industry norms. This article breaks down these changes and their practical implications for potential buyers.

How Can You Still Buy the $35,000 Tesla Model 3?

Purchasing the base Model 3 Standard trim is no longer a straightforward online process. Based on our assessment experience, Tesla has made this variant an "off-menu" item. To order it, you must visit a Tesla showroom or contact the company directly by phone. When available, this version is a software-limited version of the Model 3 Standard Plus. This means the hardware is identical, but the software restricts the battery and features to create a lower-priced model.

The key differences for the off-menu Model 3 Standard include:

• Reduced Driving Range: The range is limited to approximately 216 miles per charge, which is about 10% less than the Standard Plus's 240-mile range.
• Disabled Features: Tesla disables several premium features, such as the live music streaming service, navigation with live traffic updates, and heated seats.

The following table compares the now-hidden Standard trim with the current online entry-level model:

What Are the Details of the New Tesla Model 3 Lease Program?

Tesla now offers leasing on the Model 3, which is a common practice for luxury vehicles and can lower monthly payments compared to financing. Shoppers can choose from three annual mileage limits: 10,000, 12,000, or 15,000 miles over a standard three-year term.

However, there is a major catch that differs from most lease agreements. Tesla will not offer a purchase option at the end of the lease term. The company's stated plan is to add these returned vehicles to a future ride-hailing network of fully autonomous vehicles. This plan is contingent on Tesla achieving full self-driving capability via an over-the-air software update, a technology that is not yet legally approved for widespread use on public roads. This means lessees have no path to ownership and must return the vehicle after three years.

Is Autopilot Now Standard on All New Teslas?

Yes, Tesla has made its Autopilot suite of semi-autonomous driving features standard on every new vehicle it sells, including the Model 3. Previously, this system was a $3,000 option. Autopilot includes features like Traffic-Aware Cruise Control (maintaining a set distance from the car ahead) and Autosteer (which helps keep the vehicle in its lane). It is crucial to note that this is a Level 2 driver-assistance system and not a fully self-driving technology; the driver must remain engaged and in control at all times.

While this change increases the base price of the cars, Tesla states the net increase is less than the previous optional cost. For example, the Model 3 Standard Plus saw a $2,000 price increase with Autopilot included, versus the previous $3,000 add-on. The company cites production streamlining and safety data as reasons for the change, claiming that vehicles with Autopilot engaged had a lower accident rate.

What Do These Changes Mean for a Potential Model 3 Buyer?

For shoppers in the market for a Tesla Model 3, these updates significantly alter the value proposition and purchasing process.

• For Budget-Conscious Buyers: The path to the cheapest new Model 3 is now more complicated. You must decide if the effort of an off-menu order is worth the savings over the Standard Plus. The Standard Plus offers better value for most, given its longer range and full feature set.
• For Lessees: The lease program is attractive for those who want lower payments and plan to upgrade to a newer model in three years. However, the lack of a purchase option is a significant drawback if you prefer to eventually own your car.
• For All Shoppers: The standard inclusion of Autopilot adds value and safety features to every car, simplifying the configuration process.

The key takeaway is that the era of easily configurable, truly entry-level Tesla models online may be over. Tesla is focusing on selling higher-margin vehicles with more features directly through its website. If your goal is the absolute lowest purchase price, be prepared to make a phone call or visit a store. For a seamless online experience with more features, the Model 3 Standard Plus is now the effective entry point.