Tesla Introduces Cheaper Model 3

Tesla Introduces Cheaper Model 3

Chief Executive Officer Elon Musk noted in a tweet that the mid-range Model 3 costs $35,000 after federal and state tax rebates in California, but the clock is ticking on buyers being able to get a big chunk of those savings.

The new variant comes in at US$9,000 ($12,650) cheaper than the Long Range, and will only be available with rear-wheel drive.

While the electric-car maker was always expected to announce a less expensive variant of the Model 3, there's been no discussion of a mid-range version that would come in between Tesla's long-range and promised standard-battery versions. It's not clear if this timetable for the debut of the midrange model was originally planned by Tesla, or if the timing was pushed up due to other factors such as gaining orders ahead of the halving of the $7,500 federal tax credit later this year.

Company CEO Elon Musk said the option "was causing too much confusion", and on Tuesday revealed that a required upgrade to a Tesla-designed computer chip for the system is still about six months away.

The only available Model 3 for the previous year has been a long-range version, offered mostly at luxury prices.

Someone in Zimbabwe is fed up with queuing for fuel - they have bought an electric-powered Tesla Model X.

On top of your base Tesla purchase, this add-on cost $3,000 for the future "Full Self-Driving" option in an addition to the $5,000 upgrade for the "Enhanced Autopilot", which the company says is necessary for the self-driving feature. This new mid-range version of the Model 3 gives Tesla a way to lower the vehicle's price slightly while expanding its addressable market to a wider audience.

The midrange Model 3 should be welcome news for those who can't afford to shell out upward of $60,000 for an electric auto.

Tesla late on Thursday started accepting orders for a more affordable Model 3 Mid Range sedan for buyers in the United States and Canada. In response, the company promised an upcoming model with a standard battery pack that will remain faithful to the initial price promise. The range is an EPA estimated 260mi on a single charge, roughly 70 miles fewer than the most powerful performance model option.

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