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Tesla Model 3: Top Alternatives & Competitors
John Goreham is a life-long car nut and recovering engineer. John’s focus areas are technology, safety, and green vehicles. In the 1990s, he was part of an academic team that built a solar-electric vehicle from scratch. His was the role of the battery thermal control designer. After earning his engineering degree, John also completed a marketing program at Northeastern University. For 20 years, he applied his engineering and sales talents in the worlds of semiconductor manufacturing, biopharmaceutical production, and automotive electronics supply chain. Always a writer, John has published numerous articles in technical journals such as Chemical Processing Magazine. In 2008 he retired from that career and dedicated himself to chasing his dream of being an auto writer. In addition to online publications such as Car Talk, John’s work has appeared in print in dozens of American newspapers, and he provides reviews to many vehicle shopping sites.
The Tesla Model 3 is a unique vehicle in many ways. This small/midsize sedan is battery-electric, meaning it is driven by an entirely electric powertrain.
The Model 3 is also a very high-performance vehicle in some trims, capable of a 0-60 MPH sprint in just 3.1 seconds, according to Tesla. It is available in either rear or all-wheel drive.
Unlike many vehicles sold today, there is no perfect copy of the Model 3 from any other manufacturer. Therefore, our alternatives will be selected based on what the shopper wants most from a vehicle “like the Model 3".
Table of Contents
- Tesla Model 3 Weaknesses
- Tesla Model 3 vs. Competitors
- 1. Â Honda Insight
- Current Honda Insight Deals & Incentives
- 2. Kia Niro EV
- Current Kia Niro EV Deals & Incentives
- 3. Lexus IS 500
- Current Lexus IS 500 Deals & Incentives
- 4. Volkswagen ID.4
- Current Volkswagen ID.4 Deals & Incentives
- 5. Jaguar I-PACE
- Car Research & Comparisons
- Frequently Asked Questions
Tesla Model 3 Weaknesses
The Takeaway: The Tesla Model 3 is a unique sedan that can be tricky to cross-shop.
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At the time of this story’s publication, Tesla is advising that new Model 3s ordered now will have a two to six month lead time before the owner picks it up at one of Tesla’s retail locations or has it delivered. It is understandable that shoppers may want some alternatives to consider on the outside chance that those options are more readily available. Also, Tesla has some quirks. There are states in which the company has almost no retail or repair footprint (New Hampshire, for example, where this story was written). Also, not everyone who tries a Tesla falls in love with its unique interior and controls scheme.
The Model 3 ranges in cost to the consumer from about $43K to about $70K. That is a massive price spread, so our alternatives will range wildly to cover the full scope of that budget. One model we opted not to include in this list is the Ford Mustang Mach-E. Ford is having an even harder time building this very popular model, so it would be unfair to pretend it is available to shoppers today. We also nixed the Honda Clarity because Honda has abandoned that model for 2022.
Tesla Model 3 vs. Competitors
| Model | Approximate Consumer Cost Range* | EPA-Estimated Annual Energy Cost | Passenger Volume | J.D. Power Vehicle Dependability Score (Lower Is Better) | Range fully-energized (Miles) |
| Tesla Model 3 | |||||
| Honda Insight | |||||
| Kia Niro EV | |||||
| Lexus IS 500 FSPORT | |||||
| Volkswagen ID.4 | |||||
| Jaguar I-PACE |
*Current federal tax incentive has been included in this cost.
J.D. Power & Associates VDS measures owner-reported problems with vehicles three years of age.
1. Â Honda Insight
The Honda Insight is a hybrid-electric sedan about the size of the Model 3. The Insight would be an option for those shoppers who really just need a green vehicle roughly the size of the Model 3. The Insight would compare to the lowest-priced model of the Model 3, called the Standard Range Plus.
Honda’s Insight is surprisingly roomy inside. It also features a Top Safety Pick Plus score, matching the Tesla Model 3’s rating. For those who commute in inclement weather, the Insight is front-wheel drive, preferable to the rear-wheel drive offered by the Tesla SR+ trim.
Like every model on this list except the Tesla, your phone will work via either Android Auto or Apple CarPlay in the Insight.
The Takeaway: If you are looking for a green commuter car the size of the Model 3, the Insight can deliver the same result at a dramatically lower cost.
Current Honda Insight Deals & Incentives
| Year | Make | Model | Cash Incentives (up to) | Best Avail. APR | Lease Offers | Expiration |
|---|---|---|---|---|---|---|
| 2021 | Honda | Insight | ||||
| 2022 | Honda | Insight | 2.90% | 7/5/2022 |
You may qualify for additional deals and incentives, check out this month's Honda deals and average prices paid.
2. Kia Niro EV
The Kia Niro EV is a battery-electric five-door hatchback with the same interior passenger volume as the Model 3. However, instead of the 15 cubic feet of cargo offered by the Tesla, the Kia offers 22 cubic feet. Its front-wheel drive is also more practical than the real-wheel drive SR+ for those who drive in winter weather.
Setting aside the facts and figures of the Kia Niro EV and Model 3 for a moment, we should discuss driving satisfaction. We test drove a Kia Niro EV back to back with a Tesla Model 3 and found the Kia to be more to our liking. The real-world acceleration is similar, the instant torque of the EV powertrain is present in both vehicles, and we even found the Kia’s driver-assist technology was not far behind Tesla’s on the highway.
Those who prefer conventional controls and infotainment will find Kia’s are among the best in the business.
The Takeaway: The Kia Niro EV is a surprisingly comparable vehicle to the Tesla Model 3 SR+.
Current Kia Niro EV Deals & Incentives
| Year | Make | Model | Cash Incentives (up to) | Best Avail. APR | Lease Offers | Expiration |
|---|---|---|---|---|---|---|
| 2021 | Kia | Niro EV | ||||
| 2022 | Kia | Niro EV | 2.90% | 7/5/2022 |
You may qualify for additional deals and incentives, check out this month's Kia deals.
3. Lexus IS 500
The Tesla Model 3 Performance is a small sedan with few rivals - on paper. However, on a racetrack or on a lonely stretch of mountain roadway there are a lot of vehicles that scratch the same itch. One of those is the Lexus IS 500 FSPORT Performance.
Lexus’ IS line is a rear-drive sports sedan. The 500 FSPORT Performance is the top dog of the line and sports a modern V8 powertrain with real gears that you yourself can control. We have driven all of the Lexus V8-powered sports sedans on and off track, including the precursor of the IS 500, the IS F. All of them are a blast to drive.
We find the Lexus rear-drive sports models to be easy to control with the throttle. You can drift them a bit, and they can be very neutral when you pass the limits of adhesion. On normal roads, there is almost no place where anyone can put to use the low-four-second 0-60 MPH times offered by such a vehicle. In the real world, and on the track, the Lexus IS 500 will offer owners a very exciting vehicle to be behind the wheel of.
Why Lexus when many other brands offer similar or greater performance? One reason is that the Lexus owners experience half the problems that Tesla vehicles do over the first three years of ownership according to the J.D. Power Vehicle Dependability Study.
The Takeaway: If you are buying a Tesla Model 3 Performance and want an alternative, Lexus offers one that doesn’t break.
Current Lexus IS 500 Deals & Incentives
You may qualify for deals and incentives, check out this month's Lexus deals.
4. Volkswagen ID.4
The new Volkswagen ID.4 is a crossover with an attractive cost of ownership. With a cost that undercuts the Tesla Model 3 SR+, and an optional AWD trim now arriving, the ID.4 offers shoppers who primarily want an affordable BEV a great choice.
Even better, VW’s deliveries seem to be among the highest in the American market right now for vehicles of this type. A new factory in Tennessee will help keep that the case.
The ID.4 is not a sedan, but other than that, the car matches up well with more affordable Tesla Model 3 trims. The range is nearly identical to the Model 3 SR+, and we expect its annual and long-term cost of ownership to be lower.
The Takeaway: VW has a BEV crossover alternative to the Tesla Model SR+ with better availability and a lower cost of ownership.
Current Volkswagen ID.4 Deals & Incentives
| Year | Make | Model | Cash Incentives (up to) | Best Avail. APR | Lease Offers | Expiration |
|---|---|---|---|---|---|---|
| 2021 | Volkswagen | ID.4 |
You may qualify for additional deals and incentives, check out this month's Volkswagen deals.
5. Jaguar I-PACE
The Jaguar I-PACE is not a head-to head competitor to the Tesla Model 3, but rather, the Model Y. In fact, the Model Y is a close copy in many ways of the Jaguar I-PACE which appeared years ahead of Tesla’s crossover. So why are we suggesting the Jaguar to Model 3 shoppers?
Simply because the thrill of driving the I-PACE is exactly what many high-end Model 3 shoppers are seeking. The I-PACE is a rocket on normal roads, with performance far in excess of what anyone can legally enjoy.
The I-PACE also offers something original Tesla shoppers enjoyed - exclusivity. In California, Tesla’s are on every corner. Jaguars remain special.
Give the I-PACE a try at a dealership and you will be pleased to find out that the vehicle comes with a longer warranty than Tesla offers and that for the first five years maintenance is included. Yes, including tire rotations.
The Takeaway: If you are shopping Tesla because it bucks the trend and offers a thrilling driving experience, Jaguar offers both.
Current Jaguar I-PACE Deals & Incentives
| Year | Make | Model | Cash Incentives (up to) | Best Avail. APR | Lease Offers | Expiration |
|---|---|---|---|---|---|---|
| 2022 | Jaguar | I-Pace |
You may qualify for additional deals and incentives, check out this month's Jaguar deals.
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