Tesla Announces $45,000 Mid-Range Model 3

Tesla Announces $45,000 Mid-Range Model 3

Tesla Announces $45,000 Mid-Range Model 3

With Model 3 production almost doubling in Q2 compared to Q1 and a further increase in production volume expected during the remainder of the year, Tesla's going to need cheaper versions of the vehicle in order for demand to keep up with supply.

The base price will be $45,000; it will cost about $35,000 in California after federal and state tax rebates.

The current Tesla auto line (Roadster, Model S, Model X) ranges in price from $68,000 - $138,800 before tax incentives for electric cars. Its Model 3 deliveries, totaling 55,840, were slightly above expectations.

The mid-range Model 3s will be rear-wheel drive only, prompting some to wonder if the company was using software to limit battery capacity on existing RWD inventory in order to get it out of the door. 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.

The Model 3 is a four-door compact sedan that can seat up to "five adults comfortably, and the word comfortably is the key", Musk said.

Now there are three choices: The new one, the performance model, and a "long-range" version between the two. Offering cheaper versions of the vehicle raised a "big and unanswered question" of Tesla maintaining profit targets for the auto, he said. The new version is now the cheapest available variant of Tesla 3 priced at $45,000.

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Even the new version, though, doesn't fulfill the company's promises.

After 200,000 units, Tesla must phase out the tax credit.

This $75,000 Model X was seen in Harare this week and is believed to be the first fully electrical vehicle to be delivered to the country.

A Tesla representative on Thursday confirmed the doubters' suspicions.

In less confusing news, if you "take delivery" by the end of the year, you are "eligible for the full $7,500 Federal Tax Credit" - bringing the price down to $33,200 ("After incentives & gas savings"). When they do, the amount that customers will effectively pay for a Model 3 will much be closer to the list price of the vehicle.

Tesla said it has used the same battery pack as the long-range version with fewer cells for the mid-range version.

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