Tesla Starts Offering $45K Model 3

  • Tesla Starts Offering $45K Model 3

Tesla Starts Offering $45K Model 3

The version on sale for the last year-the long-range version-costs between $49,000 and $78,000. 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.

What will arrive in as little as six weeks, and be available in the US and Canada, is called the Model 3 Mid Range.

And while Tesla said last week that only cars ordered by October 15 would be guaranteed delivery before the end of 2018, when the available federal tax credit for their purchase drops from $7,500 to $3,750, the Model 3 ordering website says that deliveries of the mid-range versions are possible within six to 10 weeks, which would get some in before the deadline.

The new midrange version of the Model 3 has a single motor and rear-wheel drive, and a battery pack that will go around 260 miles on a charge.

Hitting that price target is important, because the federal tax incentives - worth up to $US7,500 per vehicle - are due to start dwindling in January.

The new version has a delivery period of six to 10 weeks, according to the website, which would customers eligible for the current $7,500 US tax credit if they take delivery by the end of the year.

The automaker announced it is now offering a lower cost Tesla Model 3 with a "mid-range" battery, and unveiled a simple new order page to buy it from. Tesla has said that it would not manufacture the base-level version of the Model 3 this year. That incentive will be cut in half for the first six months of 2019, and then gets halved again for the following six months.

Tesla shares rose 1.3% to $267.43 in German trading compared to the previous day's U.S. close as of 10:45 a.m.in Frankfurt. But Musk said a "truer cost of ownership" for the midrange version would be about $31,000, his estimate for discounting the cost of gas. Before the discounts, it will sell for $45,000 (roughly Rs. 33 lakhs) - though the company says buyers should think of the auto as far cheaper, because of the money they'll save on gas.

Tesla has had very well-publicized issues with production and then delivery logistics over the previous year.

So when's the actually-$35,000-before-incentives version of the Tesla Model 3 coming?

The midrange version has the same battery pack as the long-range model but uses fewer cells.