Tesla Emphasizes Road Tripping In Latest Advert - Still Leaves Out Fees In Pricing

In its latest of a series of advertisements being emailed to prospective buyers, Tesla continues its trend of offering seemingly lower than actual prices. The Tesla Model 3 and Model Y are advertised as having a federal income tax incentive for which less than half of American tax filers may qualify. Tesla also leaves out its Destination Fee and makes no mention of it in its advertising fine print.

Tesla’s latest advertisement reads, “With plenty of range, cargo space and convenience features like Autopilot, owning a Tesla will change the way you road trip. Set your route using Trip Planner to automatically schedule charging stops along the way. Plug in at 19,000+ Superchargers across the U.S. and enjoy nearby amenities while you charge. Engage Camp Mode when you arrive at your destination for maximum cabin comfort.”

Below the sales pitch, Tesla offers this price example for the Model 3 and Model Y: “Model 3 starts at $32,740 and Model Y starts at $39,990 after the $7,500 federal tax credit available to eligible buyers.” However, those prices do not include the $1,390 Destination Fee Tesla charges all buyers.

On its public-facing webpage, Tesla does provide a summary of the pricing, and it does include the Destination Fee on that summary. Tesla also provides an abbreviated overview of the way the tax law works. Tesla shows the income caps to qualify for the incentive but makes no mention that if the filer does not incur a tax burden of $7,500, then the benefit would also not apply. CNBC reported that 57% of American households paid no federal income taxes in 2021. In a typical year, the percentage is a few points lower, but it is easy to see that the federal EV tax incentive only applies to a narrow segment of the country’s workers. 

The advertisement sent out by Tesla to shoppers prior to this one was during Father’s Day. That one also emphasized low, low prices, and it also ignored the full cost of the Teslas in the advertisement. Prior to that advert, Tesla sent its shoppers an ad that said Tesla vehicles require no scheduled maintenance. This is despite the owner's manual having scheduled maintenance listed for the models advertised.

With Tesla’s vehicles and its Supercharger network both being among the best in the business, why does Tesla need to resort to these types of advertisements?   

John Goreham is an experienced New England Motor Press Association member and expert vehicle tester. John completed an engineering program with a focus on electric vehicles, followed by two decades of work in high-tech, biopharma, and the automotive supply chain before becoming a news contributor. In addition to his eleven years of work at Torque News, John has published thousands of articles and reviews at American news outlets. He is known for offering unfiltered opinions on vehicle topics. You can follow John on Twitter, and TikTok, and view his credentials at Linkedin.