Published: Thu, February 07, 2019
Economy | By

Tesla drops Model 3 base price; still $8000 above $35000 target

Tesla drops Model 3 base price; still $8000 above $35000 target

The company is ramping up production of the Model 3 and trying to make it more accessible for mainstream vehicle buyers.

If you go to Tesla's order page for the Model 3, you'll see the cheapest, rear-wheel drive with a mid-range battery starting at $34,850.

In a tweet at 2 a.m. ET on Wednesday, Chief Executive Elon Musk shared a Tesla post announcing the new price would be $42,900.

Now, Tesla has updated its website to the new pricing which shows that once the federal tax credit of $US3,750 and a fuel savings (based on 10,000 miles and a cost of $US2.85 per gallon) are applied, USA drivers can buy the mid-range Model 3 for $US34,850 ($US49,049).

Earlier this year, the company made a decision to cut 7 percent of its full-time workforce to further cut costs, following Model 3 production finally achieving most of its potential after months of assembly process bottlenecks. CEO Elon Musk says the Model 3 must be competitive with gasoline-fueled cars for the company to succeed.

On Twitter, Tesla fans weren't thrilled about spending more than $35,000 on the Model 3 and were annoyed about the slight price drop. "It's a super hard grind", he wrote.

The program, that ended at the beginning of February, gave new buyers six months of free charging as well as prizes for existing owners. Tesla said in a statement that ending the costly referral program allowed it to cut the Model 3 price.

A USA federal tax credit began phasing out for Tesla in January, effectively raising the price of cars by $3,750.

Like this: