Tesla launches new $45,000 Model 3

Roman Schwartz
October 19, 2018

Tesla previously promised that the Model 3's base price will start at $35,000, but drivers were disappointed with the $49,000 price tag that was revealed when the vehicle was launched.

In addition to these changes, Tesla is temporarily removing the $3,000 Full Self-Driving option from all of its models, which it said prepared them for autonomous driving capability when the software is available to make it work.

Shares of the Palo Alto, Calif. -based electric vehicle (EV) industry pioneer are down about 3% on Friday afternoon on the news regarding a newly lowered base price of $45,000 for its Model 3 sedan. But in California, it will cost $US35,000 after federal and state tax rebates, Musk said.

The automaker is replacing the long-range battery in the rear-wheel-drive version of the compact sedan that retailed for $49,000 with a mid-range battery that drops the starting price to $45,000 and the range from 310 miles to 260 miles. Despite production issues that have slow deliveries, there are plenty of Model 3s already on the road although none were sold at that promised $35,000 price point.

When the more affordable Tesla sedan launched previous year, pricing started at $49,000 for 310 miles of range, which was well above the $35,000 long-range EV the company promised.

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Tesla is promising deliveries in four to eight weeks.

As with other Model 3 versions, Tesla hasn't revealed a precise battery capacity; but if it corresponds to range, this battery pack would factor in at about 63 kwh.

Musk made a big splash more than two years ago when he first unveiled the Model 3, vowing its price would began at $35,000 before incentives.

Even the new version, though, doesn't fulfil the company's promises. The long-range rear-wheel-drive auto will be available "off menu" for several days. While he has yet to deliver on that sticker price two and a half years later, demand has been strong, with sales rivaling some of the top-selling passenger cars in the USA last quarter. For example, NY offers a further $2,000 incentive, dropping the price down to $35,500. Its Model 3 deliveries, totaling 55,840, were slightly above expectations. But in the meantime, the electric-car maker is taking orders for a mid-range battery Model 3 that's edging closer to that sticker price.

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