Tesla Model 3 will now have a new and cheaper variant

Customers would now get a new version of Tesla’s lowest priced car, the Model 3 which would be priced at a slightly lower rate than the current model.

Terming the new model a “lower cost, mid-range Tesla Model 3”, the announcement for the new lower priced Tesla car was made by the CEO of the firm Elon Musk in a tweet on Friday.

Compared to the currently available cheapest version of the Model 3 priced at $49,000, the starting price of the new version variant of the Model 3 would be at $45,000, Musk informed.

This The mid-range priced battery powered has the potential to travel up to 260 miles on a single charge. For electric vehicles, one of the most important determinants of its final price is the range and strength of the battery that powers the car. Those electric vehicles that have stronger batteries are able to travel up to 310 miles on a single charge but such cars come at a starting price of $54,000. However, Tesla no longer offers the previous $49,000 priced version of the Model 3 because it has been merged with the cheaper rear-wheel drive option and the pricier long range battery.

The company said that it would not be until the next four to six months the customers can be offered the standard battery model that can be expected to power the vehicles till about 200 miles on a single charge and would be prices at a starting cost of $35,000. When the new variant of the $35000 prices Model 3 comes in the market, it would be close to the prediction Kelley Blue Book of an electric car at an average price of $35,541 for all electric cars sold in the United States.

A tax credit of $7500 would be given to all US customers who purchase Teslas before December 31. But for those who want to purchase the cheaper version might not be eligible for the credit because according to Tesla, the new version would only be shipped in six to ten weeks.

For those customers intending to purchase Tesla cars, the tax credit will be lowered to $3,750 on January 1, 2019 and to $1,875 on July 1, 2019. This essentially means that those customers who want to delay their purchase of Tesla till the $35,000 version of the Model 3 would not be eligible for the entire range of the current tax credit. The policy of tax credit for Tesla purchasers would come to an end in 2020.

At the end of the third quarter, Tesla only manufactured the Model 3 that is costlier and is powered by twin motors and all wheel drive version because the company is looking for more cash and profits. The company has however earlier manufactured some rear-wheel drive Model 3’s. The new $45,000 model is rear-wheel drive.

Investors of Tesla have been reassured by the firm that the company would start to make profits in the third and fourth quarters of the current year.  The roll out of the $35,000 version of the Model 3 was delayed by the company because it wanted to raise the cash that it requires.

(Adapted from Money.CNN.com)


Categories: Entrepreneurship, Strategy, Sustainability, Uncategorized

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