Musk late Thursday announced Tesla's lowest-cost version yet of its newest auto, with the CEO writing in a tweet that the mid-range Model 3 "costs $35k after federal & state tax rebates in California", but pegging its ultimate ownership cost at an even lower price point given the money saved not buying gas. But in the meantime, the electric-car maker is taking orders for a mid-range battery Model 3 that's edging closer to that sticker price.
The release of a lower-priced Model 3 was a "logical next step", Evercore ISI analyst Arndt Ellinghorst said in a note.
Tesla is finally offering a less expensive version of its Model 3 electric auto.
Tesla CEO Elon Musk has, at least a couple of times, suggested that selling the Model 3 Standard Range at its originally announced $35k wouldn't be profitable. The new version is now the cheapest available variant of Tesla 3 priced at $45,000. However, as Reuters reports, this week Tesla introduced a rear-wheel drive mid range battery model for $45,000. Any new Tesla delivered after January 1st 2019 (but before July 1st 2019) is only eligible for a $3,750 IRS credit. That it did so is a little surprising; just seven days ago Tesla said that it could not guarantee any order received after October 15th would ship before the beginning of next year.
As for the actual $35,000 Model 3, the vehicle will be referred to as the Model 3 Standard Range and should have 220 miles of range.
To date, the company had only been offering more expensive versions of the vehicle.
Tesla has had very well-publicized issues with production and then delivery logistics over the past year. Shipping a $35,000 iteration of the sedan right away would "cause Tesla to lose money & die", he tweeted. The performance dual motor all-wheel drive version costs $64,000 before incentives and gas savings, and the long range battery dual motor all-wheel drive version costs $54,000.
That long-awaited price point may still be another few months away, Musk suggested in a post on Thursday describing the mid-range Model 3.
The battery pack itself, according to a Tweet from Musk, is from the Long Range model.