Inside the White House with D.C.'s most wired reporter. Sign up for Mike Allen's Axios AM.

Stories

Tesla unveils less expensive Model 3 option

A sign advertisement for the Tesla Model 3 sedan.
A sign for the Model 3 sedan in August. Photo: Saul Loeb/AFP/Getty Images

Tesla announced Thursday night that it's now selling a somewhat less costly, $45,000 version of its Model 3 sedan that has a 260-mile range.

Why it matters: The mass-market Model 3 is critical to the Silicon Valley automakers' future and, more broadly, pushing electric vehicles into the mainstream.

Read more toggle
Show less
Go deeper226 Words

But, but, but: It's less expensive than models currently available, which start at $49,000 and go up significantly from there. But still not the $35,000 base price offering initially pledged when Tesla first announced the Model 3.

  • However, Tesla said via Twitter than with federal incentives and state tax rebates in California, the actual price "mid-range" battery option is around $35,000.
  • And Musk said via Twitter that "true cost of ownership is closer to $31k after gas savings."
  • Meanwhile, the actual $35,000 base model isn't available until next year.

Details: The new offering, according to Tesla, has a battery structure that's the same as pricier versions, but with fewer cells. It has a delivery time estimate of 6–10 weeks.

What they're saying: Over at Greentech Media, Julia Pyper notes that "Tesla supporters will likely see today's news as a positive development," and offers some important context...

  • "While the new Model 3 has a shorter range, rear-wheel drive and a slower top speed, Tesla succeeded in slashing $4,000 off of the price. That's something," she writes, noting it widens the number of people who can afford it.
  • However, she adds, the "Tesla website notes that the full $7,500 federal tax credit is only available to customers who take delivery by the end of the year (given the company has already hit the 200,000 unit tax credit limit)."
Tesla
More stories loading.