Tesla is discounting its cars in Singapore by $3,000 to $3,800 to make them 'more affordable' — but they still cost upwards of $57,000

• Tesla announced that it has discounted its cars in Singapore.
• Singapore is the most expensive country in the world to own a car.
• The city-state's vehicle license can cost more than the retail price of a Tesla car.

Tesla recently slashed the prices of its cars in Singapore — but not by much.

Elon Musk's company announced in a press release on Friday that the new Model 3 and Model Y vehicles will be discounted by 4,000 to 5,000 Singapore dollars, or $3,000 to $3,800. The electric vehicle manufacturer said it aims to make car ownership "more affordable" in Singapore.

The price adjustments are before Certificate of Entitlement, or COE fees are added to the car's retail cost. All cars in Singapore are subject to COE, which is a license that allows individuals to own and operate a vehicle in the city-state for 10 years.

"Tesla aims to pass the value from efficient cost savings directly to all valued customers and to further accelerate the world's transition to sustainable energy in the city with affordable electric vehicles," the company said in the press release.

According to the press release, Model 3 and Model Y cars are now between 4.35% to 5% cheaper. Previously, the Model 3, a rear-wheel drive, cost SG$79,990, but now retails for SG$75,990. For the performance version of the Model 3, the price has been slashed from SG$99,990 to SG$94,990.

Similar price cuts were made to the Model Y. The rear-wheel drive model previously cost SG$91,990, and now costs SG$87,990. The performance version of Model Y had a price cut too, from SG$110,990 to SG$105,990.

While Tesla has not made the cost of its cars' COEs public, the Land Transport Authority of Singapore stated that COE costs around SG$74,000 on average for a basic car, as of June last year. This means that it's likely that a Tesla car's COE is more expensive than what it actually retails for.

But Tesla cars still enjoy some discounts from the Singapore government, as local authorities are trying to incentivize the ownership of electric cars. The cost of Tesla cars can be rebated up to SG$45,000 in the EV Early Adoption Incentive and Vehicular Emission Schemes, Tesla said in the press release.

Singapore is the most expensive country in the world to own a car. While a compact sedan costs around SG$125,000 on average in the city-state, an economy sedan can cost as little as $10,000 in the US, per California-based automotive resource Edmunds.

In addition to COE, cars in the city-state are also subject to excise duty and goods and services tax, an additional registration fee, and a price rebate and surcharge that varies according to a vehicle's carbon emissions.

Tesla's representatives in Singapore did not immediately respond to Insider's request for comment.