Tesla Model 3 price gets cut again, now starts at $42,900
07 February, 2019, 21:54
The Model 3, which was previously $44,000, was initially supposed to cost $35,000 when it was first introduced in 2016, CNN reported.
The company is rapidly ramping up production of its Model 3 sedan and lower prices could help it reach a broader customer base than its pure luxury vehicles. Tesla has also been cutting costs as it looks to turn in profits this year.
The starting cost of the Model 3 is now about $35,000, after about $8,000 of credits and fuel savings, Tesla Chief Executive Officer Elon Musktweeted.
Now, Tesla has updated its website to the new pricing which shows that once the federal tax credit of $US3,750 and a fuel savings (based on 10,000 miles and a cost of $US2.85 per gallon) are applied, United States drivers can buy the mid-range Model 3 for $US34,850 ($US49,049).
Tesla has previously said in a statement that that ending the costly customer referral program has allowed it to cut the Model 3 price.
Elon Musk's automaker has already cut its prices once this year, back at the start of January, when it lopped off $2,000 to offset the impact of federal electric vehicle tax credits being cut. "It's a super hard grind", Musk tweeted.
The referral program that ended at the beginning of February gave new buyers six months of free charging and prizes for existing owners such as launching personal photos into deep space or invites to a Tesla event.
Tesla shares were down 0.2 percent in Wednesday morning trading, at $320.74.