Photo: Tesla
Do you personally know anyone with the $35,000 Model 3 that Elon Musk promised us a few years ago? Neither do I, but they do exist in pretty small numbers somewhere out there. The reason Tesla made the entry-level version so hard to purchase is pretty cheeky, and yes, it all boils down to profit margins for the Palo Alto-based automaker.
The Model 3 Standard Range was introduced in February 2019 with 220 miles of range, but two months later, Tesla decided to spin it off into an off-the-menu item in favor of the Model 3 Standard Range Plus. By off-the-menu item, I am referring to either a phone call or heading to a Tesla dealership to place a special order on it.
Electrek understands from “sources familiar with the matter” that Tesla has killed off the $35,000 version for good, which is a bit of a bummer by most accounts. Some people don’t want the Long Range or Performance but 220 miles, which is more than enough of a driving range for most daily commutes to work and back home.
The sources mentioned earlier also understand that “Tesla informed staff that they weren’t allowed to downgrade 2021 Model 3 vehicles to Standard Range and sell them for $35,000.” The cited publication says that only the 2020 Model 3 Standard Range Plus still in inventory is available for $35k with a software lock on the battery.
Demand for the all-electric sedan is through the roof pretty much everywhere in the world, and the lower profit margin on the M3SR makes little sense for the time being. Fred Lambert from Electrek believes that Tesla could allow downgrades again “at some point next year,” but that guesstimate has very slim chances of happening.
You see, let’s rewind to September 2020 when Elon Musk promised us a ridiculously cheap EV. The Model 2, Model 1, or whatever it will be called will cost $25,000 according to the head honcho, and 2024 is when production is expected to start. Probably.
The Musk Man often promises more than he can deliver, which is the reason why I wouldn’t hold my breath for such an affordable EV in the United States. A $25,000 model would steal customers away from the ever-popular Model 3, and looking at the bigger picture, Tesla would suffer as a whole because of… wait for it… lower margins.
Electrek understands from “sources familiar with the matter” that Tesla has killed off the $35,000 version for good, which is a bit of a bummer by most accounts. Some people don’t want the Long Range or Performance but 220 miles, which is more than enough of a driving range for most daily commutes to work and back home.
The sources mentioned earlier also understand that “Tesla informed staff that they weren’t allowed to downgrade 2021 Model 3 vehicles to Standard Range and sell them for $35,000.” The cited publication says that only the 2020 Model 3 Standard Range Plus still in inventory is available for $35k with a software lock on the battery.
Demand for the all-electric sedan is through the roof pretty much everywhere in the world, and the lower profit margin on the M3SR makes little sense for the time being. Fred Lambert from Electrek believes that Tesla could allow downgrades again “at some point next year,” but that guesstimate has very slim chances of happening.
You see, let’s rewind to September 2020 when Elon Musk promised us a ridiculously cheap EV. The Model 2, Model 1, or whatever it will be called will cost $25,000 according to the head honcho, and 2024 is when production is expected to start. Probably.
The Musk Man often promises more than he can deliver, which is the reason why I wouldn’t hold my breath for such an affordable EV in the United States. A $25,000 model would steal customers away from the ever-popular Model 3, and looking at the bigger picture, Tesla would suffer as a whole because of… wait for it… lower margins.
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