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Tesla Model 3 Price Confirmed: $35,000 Before Incentives

There’s no shadow of a doubt that the future of Tesla Motors hangs on the success of the Model 3. After the name had been announced without any pomp and circumstance on Twitter in 2014, Elon Musk declared that Tesla aims for a starting price of $35,000. Musk’s promise has been confirmed by a Tesla spokesperson, as reported by Jalopnik.
Tesla Model S digital instrument cluster 1 photo
What does $35,000 before incentives mean? It means the Model 3 is cheaper than the 2017 Chevrolet Bolt. The golden bowtie’s electric vehicle costs approximately $30,000 after the maximum $7,500 federal tax credit. Yes, that’s $37,500 before incentives. A $2,500 advantage for the Tesla Model 3 will undoubtedly spell trouble for the Chevrolet Bolt.

If we apply the $7,500 federal tax credit to the starting price confirmed by Tesla Motors, then the Tesla Model 3 becomes a $27,500 electric vehicle. Given the circumstance, it’s hard to think of an obvious reason not to buy the Model 3 over its General Motors competitor. An affordable Tesla will democratize all-electric vehicles in the United States, Europe, and China.

Depending on demand, the Tesla European Distribution Center in Tilburg, the Netherlands, could be adapted to manufacture the all-new Model 3. Production of the Tesla Model 3 will depend on the Nevada-based Gigafactory. The Gigafactory will start producing batteries for the Palo Alto-based manufacturer later this year, including Model 3 batteries.

Pictures of a Tesla Model 3 prototype will be officially released in March, coinciding with the start for pre-orders. At the present moment, it’s not known if the Tesla Model 3 will be rear-wheel-drive only or if all-wheel-drive will be offered as an option.

Another brain teaser is the range of the thing. Musk promised more than 200 miles (322 kilometers) on a single charge, which is similar to the range of the 2017 Chevrolet Bolt. If Musk wants to turn the Tesla Model 3 into a commercial success story, the Model 3 has to mirror its biggest bragging right - the price - with its range. 250 miles (402 kilometers) is the sweet spot that could lure people away from the Bolt.


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