Photo: Tesla
After announcing that production will focus on the Model 3 to the detriment of the S and X, Tesla made an obvious move going forward into 2019. Including $8,000 for the federal tax credit and potential fuel savings, the Model 3 now costs in the ballpark of $35,000 according to Elon Musk.
The tweet, however, is misleading. The standard battery isn’t available to order, and right now, the Mid Range rear-wheel drive will have to make do. Twitter users quickly slapped Elon on the wrist, retaliating with comments such as “here’s to the $35k base price without credits. Eventually.”
Opening up the U.S. configurator for the Tesla Model 3 reveals a before-savings price of $42,900 for the Mid Range rear-wheel drive. After savings ($3,750 for the federal tax credit and $4,300 for gas savings), make that $34,850 for 264 miles of range, 5.6 seconds to 60 mph, and 125 miles per hour in terms of maximum velocity.
The Long Range Dual Motor now costs $49,900 and the Performance tops the lineup at $60,900. The question is, why did Tesla cut $3,100 off the retail price of the Model 3 in fewer than two months?
The halving of the federal tax credit is one reason, but the biggest factor is sales momentum. The Model 3 is no longer the must-have EV from July 2017, and the introduction of the standard battery with rear-wheel drive isn’t as profitable for the Palo Alto-based automaker as the Mid Range, Long Range, and Performance variants.
U.S. demand problem aside, Tesla has hope in the European market now that the Model 3 rolled out in the Old Continent. As of February 6th, cumulative Model 3 production exceeds 185,000 examples of the breed.
Opening up to Europe, Australia, and the rest of the world is one thing, but Elon Musk is under immense pressure to keep Tesla profitable. The truth of the matter is, cars with greater profit margins are what keeps Tesla afloat.
Once the dust settles on the Shanghai Gigafactory, Tesla also hopes to produce more than 500,000 Model 3s in the People’s Republic of China every year. An ambitious plan, and probably prone to fail unless Elon Musk has a trick up his sleeve.
Opening up the U.S. configurator for the Tesla Model 3 reveals a before-savings price of $42,900 for the Mid Range rear-wheel drive. After savings ($3,750 for the federal tax credit and $4,300 for gas savings), make that $34,850 for 264 miles of range, 5.6 seconds to 60 mph, and 125 miles per hour in terms of maximum velocity.
The Long Range Dual Motor now costs $49,900 and the Performance tops the lineup at $60,900. The question is, why did Tesla cut $3,100 off the retail price of the Model 3 in fewer than two months?
The halving of the federal tax credit is one reason, but the biggest factor is sales momentum. The Model 3 is no longer the must-have EV from July 2017, and the introduction of the standard battery with rear-wheel drive isn’t as profitable for the Palo Alto-based automaker as the Mid Range, Long Range, and Performance variants.
U.S. demand problem aside, Tesla has hope in the European market now that the Model 3 rolled out in the Old Continent. As of February 6th, cumulative Model 3 production exceeds 185,000 examples of the breed.
Opening up to Europe, Australia, and the rest of the world is one thing, but Elon Musk is under immense pressure to keep Tesla profitable. The truth of the matter is, cars with greater profit margins are what keeps Tesla afloat.
Once the dust settles on the Shanghai Gigafactory, Tesla also hopes to produce more than 500,000 Model 3s in the People’s Republic of China every year. An ambitious plan, and probably prone to fail unless Elon Musk has a trick up his sleeve.
Model 3 starting cost now ~$35k (after ~$8k of credits & fuel savings) https://t.co/46TXqRrsdr
— Elon Musk (@elonmusk) February 6, 2019
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