A Tesla Model 3 For $23,000? – CleanTechnica

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Last Updated on: 26th February 2025, 10:12 am

Several days ago while browsing the Tesla website, there were two used Model 3s each for about $16,000. Then, it seemed like a good idea to write about them because that’s obviously quite a low price. However, after waiting a couple of days and revisiting the site, I noticed they were gone and that the prices were not quite what I expected.

On the left side of the used Inventory page, there are two options that apparently are pre-selected as the default setting. These two options, when factored into the total purchase price, lower it substantially. If the purchaser is eligible for and receives a $4,000 used EV tax credit and achieves 5 years of fuel savings, then the price is much lower. Well, not all buyers are both eligible and will achieve exactly the same amount in fuel savings. So, the full price for some buyers might be at least about several thousand more. It’s not the best time to go into all the used EV tax credit details, so the link is provided here. For fuel savings, some drivers also drive much less, such as people who work only remotely or retirees who barely drive, for just two examples. People who drive less will have less fuel savings.

Upon returning to the Tesla site several days later, with the tax credit and estimated fuel savings boxes unchecked, there was one Model 3 with a purchase price less than $25,000. Apparently, this number is the threshold for the federal used EV tax credit – $25,000 or less.

I took a screenshot of the one for $23,200, a 2021 Standard Range Model 3 with a little over 20,000 miles. 

Here is the warranty information on the Tesla page for the car.

Basic Vehicle Limited Warranty

March 2025 / 50,000 total miles

Used Vehicle Limited Warranty

Additional 1 year / 10,000 miles

Begins after Basic Vehicle Limited Warranty expires

Battery and Drive Unit Limited Warranty

March 2029 / 100,000 total miles

If there is not a used federal EV tax credit and no fuel savings, the vehicle purchase price is $23,200. Of course, this may still be a good deal for many prospective buyers. If the buyer does qualify for the credit, then the price is about $19,200.

The next question is: can the federal and state used EV tax credits be stacked? The answer is yes, in some cases, but that state-level research will need to be conducted by the prospective buyer. There does not appear to be a one-size-fits-all approach to stacking the credits. There may be incentives available in states such as California and Vermont based on income levels. If they can be utilized they might drop the price by another couple thousand.

If the buyer of the $23,200 Model 3 receives the used EV federal tax credit making the overall price $19,200, this is about the cost of a used 2021 Toyota Corolla. However, the Model 3 is far more energy efficient, and electricity costs less than gasoline. Driving a gasoline car contributes directly to climate change and its impacts and it directly generates toxic air pollution that harms health. The oil and gas corporations of the world are some of the planet’s worst polluters. Buying their gasoline supports a great deal of harm.

A 2021 Chevy Bolt, to compare the Model 3 to another EV, is about $16,000-19,000. The Model 3 has access to the Tesla charger network and has a faster charging rate than the Bolt. The Bolt is just fine for any driving that is not long range unless you don’t mind waiting to recharge. For a little more money, the 2021 Standard Range Model 3 is a better choice from the perspective of charging convenience.

When buying from Tesla, there is another consideration for some, but not all, buyers. It’s Mr. Musk. Some people have been turned off to buying a Tesla vehicle, solar power, or battery because they don’t like his social media activity, his politics, or both.

With Mr. Musk, some potential EV buyers seem to have a double standard. About two months ago, I overheard a guy saying he test-drove a Tesla but doesn’t like Mr. Musk, so he was going to look into getting a new Toyota Prius. Perhaps it did not occur to him that Toyota also has some issues that might be deal breakers. It wasn’t that long ago that Toyota was named in scandals. Toyota has also allegedly funded climate deniers. So, buying a new Toyota Prius instead of a Tesla Model 3 because the buyer does not agree with Mr. Musk or like him doesn’t make much sense, does it?

Tesla has approximately 120,000 employees and Mr. Musk is only one. Why try to punish all those employees because of one person’s conduct? The counterargument seems to be that if the only means to send a message to him is by boycotting Tesla products, then some consumers will use that option even if there is some unintended damage. The unintended damage might be thousands of Tesla employees losing their jobs and perhaps Tesla stockholders losing value in their shares. Those employees and shareholders have done nothing wrong, and yet in such a scenario they get the punishment too.

It’s worth noting there are other used EVs on the market at fair prices too, which are not Teslas.