Yes — but only just, and only on one trim. Here is the arithmetic before you start configuring.
The starting number
The cheapest new Tesla is the Model 3 Standard. In Edmunds’ 2026 Model 3 pricing guide, published July 11, 2026, it lists at $38,380 including the mandatory $1,390 destination fee — $36,990 before destination — with 321 miles of EPA-estimated range. The next step up, the Premium rear-wheel-drive, lists at $43,880 with destination and 363 miles of range.
So one trim clears the $40,000 bar on paper, and the rest of the lineup does not. Prices change, sometimes without notice, so treat those as figures as of July 2026 and confirm the current number on Tesla’s design page before you order.
What the sticker does not include
Destination is in the number above. Sales tax, title and registration are not, and those are set by your state, not by Tesla. There is also an order fee at checkout — we break down what Tesla’s destination and order fees actually cover separately. On a $38,380 car, taxes and registration can easily add a few thousand dollars depending on where you register it.
The federal credit is not coming back to help
If you are working from an older buyer’s guide, check the date on it. The IRS states plainly that the New Clean Vehicle Credit “is not available for vehicles acquired after Sept. 30, 2025”. The used-EV credit ended on the same date. Any 2026 budget that assumes $7,500 back at tax time is off by $7,500.
State and utility programs are a different story — several are still running, and some open and close funding windows during the year. Those are worth checking before you order, because a few of them are claimed at the point of sale rather than at tax time. Our guide to finding state and utility EV incentives covers how to look yours up.
The used and inventory route
The other way under $40,000 is not a new car at all. Tesla sells used inventory directly, and existing new inventory cars — already built, sitting at a delivery center — are sometimes discounted against a custom order. Neither is a fixed price you can plan around months ahead; both are worth checking the week you are ready to buy.
Kim Java walked through the same question on her channel, including what the cheapest configuration actually gets you:
Her video is a useful walkthrough of the ordering screens; the pricing above comes from the published sources linked, and those are what to check against on the day you order.
Photo by I’m Zion.