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This is why your Tesla Model 3 is so expensive: Elon Musk concedes Australian pricing "seems high"

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Elon Musk has weighed in on Australian Tesla prices.
Andrew Chesterton
Contributing Journalist
17 Feb 2020
2 min read

Elon Musk has spoken out about Australian Tesla pricing, conceding the cost of a Model 3 here compared to USA pricing "seems high".

The Tesla boss was using his preferred communication channel, Twitter, and responding to a customer complaint over the cost of the Model 3 Down Under.

Twitter user EV-HQ tweeted Musk a screenshot of a Model 3 Dual Motor Performance from the brand's Australian site, which lists the drive-away price more than $100,000.

"This is what the (US) $40,000 Dual Motor costs in Australia....... Surely there has to be some way we can cut this cost," the tweet read. 

Musk quickly replied, conceding Australian prices "seem high".

"This does seem high," he wrote.

But drilling down on specific costs on the Tesla site does shed some light on local pricing. CarsGuide selected a Model 3 Performance to be registered in NSW, and the $106,620 order attracts a heap of taxes. 

For one, there's a delivery fee of $1375 and an order fee of $150. Then the government applies luxury car tax (LCT) of $5969, stamp duty of $4170, registration and CTP costs of $946 and a local plate fee of $150.

Read More: New Tesla Model 3 2020 pricing and specs detailed: Recently launched electric car now dearer

That means there's $12,760 in fees and taxes applied to the sale. LCT and stamp duty costs alone tally $10,139.

In the USA, on the other hand, we're LCT doesn't exist and certain states offer EV subsidies, the exact same car is significantly cheaper. 

In California, the Model 3 Performance will cost you $56,990, before a $2000 subsidy is applied, which will reduce the purchase price to $54,990. Even at today's relatively terrible exchange rates, that equates to $81,796 Australian dollars - a saving of almost $25,000.

The LCT is a contentious tax in Australia, which is charged at 33 per cent of the purchase amount above a $67,525 "luxury car" threshold.

Andrew Chesterton
Contributing Journalist
Andrew Chesterton should probably hate cars. From his hail-damaged Camira that looked like it had spent a hard life parked at the end of Tiger Woods' personal driving range, to the Nissan Pulsar Reebok that shook like it was possessed by a particularly mean-spirited demon every time he dared push past 40km/h, his personal car history isn't exactly littered with gold. But that seemingly endless procession of rust-savaged hate machines taught him something even more important; that cars are more than a collection of nuts, bolts and petrol. They're your ticket to freedom, a way to unlock incredible experiences, rolling invitations to incredible adventures. They have soul. And so, somehow, the car bug still bit. And it bit hard. When "Chesto" started his journalism career with News Ltd's Sunday and Daily Telegraph newspapers, he covered just about everything, from business to real estate, courts to crime, before settling into state political reporting at NSW Parliament House. But the automotive world's siren song soon sounded again, and he begged anyone who would listen for the opportunity to write about cars. Eventually they listened, and his career since has seen him filing car news, reviews and features for TopGear, Wheels, Motor and, of course, CarsGuide, as well as many, many others. More than a decade later, and the car bug is yet to relinquish its toothy grip. And if you ask Chesto, he thinks it never will.
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