Tesla Cuts Model 3 Prices Another $1,100

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Automotive Editor

Based out of the Washington, D.C. area, Joel Patel is an automotive journalist that hails from Northern Virginia. His work has been featured on various automotive outlets, including Autoweek, Digital Trends, and Autoblog. When not writing about cars, Joel enjoys trying new foods, wrenching on his car, and watching horror movies. 

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, Automotive Editor - February 7, 2019

In Tesla's continuing quest to keep or get close to its promise of coming out with a $35,000 Model 3, the electric automaker has once again slashed pricing for the entry-level model. While Elon Musk took to Twitter to declare that the Model 3 now costs $35,000, that claim depends on whether you're a half full or half empty kind of person.

Take a look at Tesla's Model 3 page, and pricing is at $34,850. That figure, though, is after $3,750 worth of incentives and $4,300 gas savings. The latter is Tesla's estimated savings in gas when it comes to owning an electric car over a gasoline vehicle for over six years, which really depends on how much you drive and how expensive gas is.

The $1,200 destination fee isn't included in the sub-$35,000 price tag, either. So, at the end of the day, the Model 3 actually costs $44,100. Tesla lowered the Model 3's price tag in January to $45,200, so this is another $1,100 off of that price.

Still, the latest price cut is another step in the right direction toward coming out with a Model 3 that actually costs $3,500 without considering tax incentives. Last May, The Verge reported that Tesla was using the expensive Model 3 as a crutch to ensure that the company stays afloat. If Tesla were to come out with a $35,000 Model 3 in the immediate future, it could jeopardize the company.

Reducing the Model 3's price tag is also a way to ensure that consumers are still interested in the vehicle despite the loss of federal tax incentives. In January, the U.S. federal tax credit for Tesla's began to be phased out, which essentially made all of the automaker's cars $3,750 more. In an effort to make up for those cuts, Tesla has reduced the Model 3's price by a total of $3,100 this year. The tax credit will once again be cut in half to $1,875 in July.

The base Model 3 comes with the mid-range battery pack and rear-wheel drive. Total range for the mid-range option with the 62-kWh pack is a total of 264 miles. The model can get to 60 miles per hour in 5.6 seconds and has a top speed of 125 mph. Tesla's configurator states that delivery for a standard battery takes between four to six months.

Learn more about the Model 3

, Automotive Editor

Based out of the Washington, D.C. area, Joel Patel is an automotive journalist that hails from Northern Virginia. His work has been featured on various automotive outlets, including Autoweek, Digital Trends, and Autoblog. When not writing about cars, Joel enjoys trying new foods, wrenching on his car, and watching horror movies. 

Follow On: Twitter | Website

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