Tesla Model 3 Price Cut for Second Time This Year

  • by Shawn Tate
  • in Economy
  • — Feb 7, 2019
Share:

The move follows a US$2,000 price cut on all Teslas announced in early January to partially offset the reduction in the USA federal tax credit its vehicles were eligible for. Tesla said in a statement that ending the costly referral program allowed it to cut the Model 3 price. The price cut does not quite offset the disappearance of the tax credit for Tesla buyers, but it does offer a partial redress for it.

The Model 3, which was previously $44,000, was initially supposed to cost $35,000 when it was first introduced in 2016, CNN reported.

In a reply to a Twitter user asking about when Tesla would drop the Model 3 base price to $35,000, without credits, Musk said, "We're doing everything we can to get there.

The incremental reductions in price are the result of a war Tesla's team is waging on bringing costs down.

"The demand for - the demand for Model 3 is insanely high. It's just like people literally don't have the money to buy the auto", Musk during the company's earnings call last week. The automaker has been picking away at costs through simplifying the lineup - the Model S and Model X will now only be offered with a 100-kWh battery, locked by software for some buyers - while also eliminating some options on the Model 3.

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 Musk tweeted.

Musk, 47, announced to employees last month that Tesla would reduce headcount by about 7 percent, citing the challenges the company faces making its vehicles affordable without compromising profitability. The upcoming model will be.

Share:

IN CASE YOU MISSED IT

RELATED NEWS

BB&T to buy SunTrust: It’s the biggest bank merger in a decade
Cost cuts will come by eliminating duplicate administrative and technology services, and by closing bank branches. King will perform those same roles in the new bank until 2021 - when current SunTrust Chairman and CEO William H.
2/07/2019

Jennifer Lawrence is engaged to Cooke Maroney
While we've never met her personally we feel that in some kind of alternate universe, we'd be good pals with Jennifer Lawrence . Lawrence has also previously dated Coldplay frontman Chris Martin and her Mother! director Darren Aronofsky .
2/07/2019

West Ham boss Pellegrini wants fans banned following Salah abuse
In a statement, a West Ham spokesman said the club have a "zero tolerance policy" to any form of violent or abusive behaviour. Jurgen Klopp admits Liverpool FC are embroiled in a tough title race after Monday night's 1-1 draw at West Ham .
2/07/2019

DISNEY Promises More R-Rated DEADPOOL Movies Under their Watch
Nowadays, Disney licenses its franchises to outside studios instead, with EA being their largest partner. However, the revenue came in slightly lower than the first quarter of 2018.
2/07/2019

Yankees: Aaron Judge is willing to move positions for Bryce Harper
If you believe any offseason speculation, it's down to the Phillies , Nationals, White Sox (or Padres). The Post suggests that Harper could round off a righty dominant lineup with is left-handed bat.
2/07/2019

Outcry over Uganda plan to draw tourists with 'curvy women'
She demanded that the contest is taken down and that the minister offers a public apology for coming up with such an initiative. Mrs 007 wrote on Twitter: "In Uganda, curvy women are now tourist 'products" as if zoo animals.
2/07/2019

Bud Light Super Bowl corn syrup ad: Lobby slams beer maker
The Bud Light crew goes full "Lord of the Kings" and travels across the land to deliver the corn syrup to Miller Lite. Corn farmers clapped back at Bud Light following a commercial in which the beer boasted about not using corn syrup.
2/07/2019

Freezing drizzle advisory issued
Salters were on standby at locations across the city beginning at 4 a.m. and have been busy throughout the day. A round of freezing rain is expected to begin late Tuesday night and last into Wednesday morning.
2/07/2019

Meghan Markle's friends say she is being 'bullied'
And, boy, did it quickly turn dark. " Meghan comes across as strong and determined", continues the insider. Contrary to popular belief, Meghan Markle's life after becoming the Duchess of Sussex has not changed much.
2/07/2019

Maroon 5 halftime show gets help from a famous sponge
In the end, the halftime show at Super Bowl LIII told us a lot about the atmosphere of fear overtaking American entertainment. Maroon 5 delivered everything they had for their big Super Bowl LIII Halftime Show , but that may not have been enough.
2/07/2019

Kelly Claims He'll Be Touring Australia "Soon" & Sure You Will, M8
Kelly , the embattled singer announced a new overseas tour that would take him far away from the United States. Kelly continues to experience fallow following revelations in the scathing Lifetime docuseries, Surviving R.
2/07/2019

Astronomers Reveal a Warped and Twisted Milky Way
Combined with a Cepheid's observed brightness, its pulsation period can be used to obtain a highly accurate distance. NAOC found that this galactic game of schoolyard bullying forms the warped S-shape of our galaxy.
2/07/2019

Harrison Barnes 'wanted to play' despite knowing of possible trade
The small forward has an 8 percent trade bonus in his contract valued at $686,443 (as of Thursday). With Barnes off the books, Dallas can get close to having a max salary spot available this summer.
2/07/2019

White House says feds' inaugural probe part of 'hysteria'
Federal law prohibits foreign donations to federal campaigns, political action committees and inaugural funds. Federal prosecutors in NY have issued a subpoena seeking documents from Donald Trump's inaugural committee.
2/07/2019

USA oil prices dip on rising crude inventories, record output
Fritsch of Commerzbank said the Venezuelan issue could still drive oil higher. The global benchmark crude was at an $8.36 premium to WTI for the same month.
2/07/2019