Big Discounts on Tesla Model 3s Hint at New 3's Imminent Arrival

Tesla's entry-level all-electric sedan, the Model 3, has been going through price cuts of late, with the most recent back in June. While those discounts have been between $2,500 and $3,040, we're starting to see reports of prices now slashed by as much as $5,500 for in-inventory 3s. While it's potentially welcome news for buyers looking to get into a cheaper, still-brand-new Tesla, it's most likely not because the American EV maker is gesturing some good will. Instead, this news likely heralds the imminent release of the Model 3's long-awaited significant update.

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According toInsideEVs, the smallest Tesla vehicle is being phased out ahead of a newer 3's arrival and already built examples lurking in Tesla's inventory are going for as little as $37,120. Looking on Tesla's website, were you to custom-order the same base-spec Model 3 RWD, you'd pay $40,420 (not counting any tax incentives). Looking at existing inventory around theMotorTrendLos Angeles office, it didn't take long to find Model 3 RWD options for under that official MSRP.

We're also seeing the same price changes hitting other Model 3s in Tesla's inventory, such as a Long Range Dual-Motor AWD example going for $44,320 (list price: $47,240) and a Performance AWD going for $47,920 (normally $53,240). That means most Southern California buyers are seeing up to $5,320 off the normal price, butInsideEVshas seen as much as $5,520 discounted from a Performance version in Beverly Hills, California.

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Again, this is welcome news for anyone looking to buy a cheap Tesla without taking the risk of a used or private party purchase. It strongly points toward the rumored Model 3 refresh coming soon, as typically automakers clear out their existing inventory with incentives or price cuts to make way for newer stuff. There haven't been any other direct indications of this yet, butInsideEVspoints out that Chinese media claims a reveal is set for September 1, adding that Gigafactory Shanghai has reportedly been producing the refreshed Model 3 for over a month; there have been sightings of the new one there, as well as of a prototype driving around Germany earlier this week decked out in camouflage, rear reflectors, and similar tail lights found in other camo'ed cars around the U.S. and New Zealand.

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Allegedly, the new Model 3 will feature a revised nose, new headlights, a simplified chassis that integrates the 4680 cell battery packs like the Model Y, and a few other physical features and updates that aren't possible with mere over-the-air updates. Many of the bigger changes, namely the new chassis and battery pack, should reduce the cost to manufacture the Model 3 using more streamlined (and larger) castings. Whether we see this reflected by the price of the new 3 or not is yet to be determined, but if the current model suits you, now's looking like the time to buy.