Tesla Model 3 introduced with mid-range battery pack at $45,000
22 October, 2018, 19:07 | Author: Frank Williams
This new option is priced at $31,200, after factoring federal tax credits, state tax incentives, and estimated energy savings from using electricity.
The Mid Range comes with a single motor and rear-wheel drive whereas the Long Range and even pricier Model 3 Performance now come with dual motors and all-wheel drive exclusively. A $1,200 destination and handling fee will also apply.
The battery pack itself, according to a Tweet from Musk, is from the Long Range model. Tesla still hasn't introduced the base Model 3, but at least now it's bringing out a mid-range battery model priced from $46,200.
Along with the mid-range option release, Tesla has altered its entire pricing structure for the Model 3 - both of which were unexpected.
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.
The company offers its Enhanced Autopilot suite as a $5,000 upgrade that allows buyers to immediately take advantage of semi-automated steering, acceleration and braking in certain conditions. It has what the carmaker describes as "a unique architecture that is not yet in production".
The cheaper "standard-range" Model 3 is still absent from the new, simplified ordering page, and the company has made no secret of the fact that it can not afford to lose money selling the cheaper cars, no matter the demand. The long-range rear-wheel-drive vehicle will be available "off menu" for several days.
When asked when the new model will be available in dealerships, Musk said that he was sure that would happen before the year is out. With this announcement, the entry point to Tesla ownership is now $4,000 less, though with decreased battery range. That's a timeline that could just eke a number of cars through for delivery-especially perhaps in California and on the West Coast-in time for the full $7,500 tax credit.
The tax credit for Tesla cars will drop by half on January 1.
For investors, the latest Model 3 may heighten scrutiny of gross margins. If you do, they'll still oblige and let you pay extra for the now useless add-on.
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