Highlights From Today’s $35,000 Tesla Model 3 Announcement

MAR 1 2019 BY TROY TESLIKE 116

Concisely summed up in simple numerical form for you right below.

Here are the main points from the Model 3 announcement earlier today. Check them out.

  1. Model 3 Standard-Range is now available to order for $35,000.
  2. Tesla releases a new Model 3 version called ‘Standard Range Plus’ for $37,000 with a partial premium interior.
  3. Model 3 LR is now back. It was discontinued when Tesla introduced the Mid-Range version.
  4. Model 3 LR now displays 325 miles EPA rated range instead of 310 miles. That means Tesla has stopped voluntarily reducing the score. LR’s score was already 325 miles but Tesla was reducing it to 310 to advertise the same range for LR, LR AWD,  and Performance versions.
  5. The Autopilot page on S/X/3 Design Studio shows two Fully-Self-Driving features to be released later this year. I think that means Autopilot 3.0 hardware should be released soon because it will be needed for these features.
  6. Model X Standard Range version is now discontinued.
  7. The price of Model 3 Mid-Range, Long Range AWD and Performance versions have dropped by $2,900. MR starts now at $40.000 instead of $42,900. Long-Range AWD at $47,000 instead of $49,900 and P at $58,000 instead of $60,900.
  8. Autopilot is now $3,000 instead of $5,000 and it is now called just ‘Autopilot’ instead of ‘Enhanced Autopilot’
  9. Tesla has now moved three features from the Enhanced Autopilot option to the Fully Self-Driving option (Navigate on Autopilot, Autopark, Summon). This is important for financial reasons because Tesla has been selling the Fully-Self-Driving option since October 2014 but the money they collected so far didn’t count as sales. Until now, 0% of Fully-Self-Driving features had been released. Therefore even though about 43,000 buyers might have bought FSD until now (my estimate) and Tesla collected about $215 million, this would go to the balance sheet as deferred revenue. With this new change, Tesla is looking at completing FSD features quicker for those who already bought it and they will start selling FSD to new buyers that is already 40% complete (my estimate).
  10. The Fully Self-Driving option is now back in the Design Studio and the price before delivery is now $5,000 instead of $3,000.
  11. In a blog post today Tesla says they will shut down all of their stores and switch to online sales only. They will keep a few locations but those will be converted into galleries instead of stores.
  12. If you are not happy with your purchase, you can now return the car within 7 days and 1,000 miles.

Let us know your thoughts in Comments below.

Source: Teslike.com

Categories: Tesla

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116 Comments on "Highlights From Today’s $35,000 Tesla Model 3 Announcement"

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Elon was mentioning a cost reduced, lighter battery pack a few months back. I wonder if this is now in the new vehicles or is yet to come. ???

He said back then SR would use the new pack design.

I assume the other variants will also switch.

I guess the SR and SR+ have it, and the SR is a derated pack.

I was guessing the SR with the new pack would come in at 240miles. To be competitive with similar priced EVs in term of range.

The SR+ Is $37,000 about the same as the Bolt EV for basically the same range.

Fine. No stores. But what about service centres, such as the Montréal-Ferrier Service Center? What happens to those?

It’s my understanding they will not close any services centers and are actually still expanding the service side. All stores will close but galleries will remain open, and I think but I’m not sure but that some stores might be converted to galleries. I’m not as clear on the last point.

With the stores closing, I would expect a few to be converted to galleries and some of the others converted to service centers. I think the announcement about Tesla and MB with the Sprinter EV deal will play a big part in the service side with more at home/office services offered, and less physical service center facilities needed.

Either way….Well Done Tesla!

And nicely done recap article as well!!

I don’t really like it, especially the test drives. My first Model S P85 test drive got me interested in EVs and Tesla. And I know many more people where it was similar.

Also, the store near me was always full of people. Even if they didn’t buy, they got to know Tesla’s products.

Then if you can please give people who are curious a test drive in your Tesla.

I bought after a test drive as well, but I bought online. So perhaps the galleries are enough. There had to be cost cutting to get the SR on the road. We’ll see if it works.

Here, I’ve quoted the Tesla announcement for you: “At the same time, we will be increasing our investment in the Tesla service system, with the goal of same-day, if not same-hour service, and with most service done by us coming to you, rather than you coming to us. Moreover, we guarantee service availability anywhere in any country in which we operate.”

Presumably nothing will happen to them. Tesla said in the same press release that it will be concentrating on improvements to servicing their cars, which includes opening more service centers.

why on earth would anyone buy a leaf or a bolt now ??

Base Bolt can be had for $30K and change (no fast charging) plus you get full $7,500 tax credit for now.

So the price can still be a factor for a few more months.

But I see what you mean.

The question now is how many Accord and Camry buyers are going to go for the Model 3?

Will InsideEV’s be able to track how many Model 3’s are sold worldwide each month?

I think the Bolt will get Volted before the 2020 model year.

Base Bolt is missing automatic braking – you have to spend substantially more on the Bolt to get safety features equal to the 3.

The Leaf does better on that.

Bolt gives you a great battery back with a crappy car surrounding it.
LEAF gives you a much better car but a crappy battery pack inside it.

Tesla gives you the best of both worlds.

Because some people like myself need more utility from their car and they don’t have, or want to spend what it takes to get a Model X. What I use my Bolt for on almost a daily basis I couldn’t do with a Model 3. There are also those that don’t want to sit down low in a sports sedan. (Not me, I’m OK with that.) Maybe someday the Model Y will be the ticket, but here, today, the Bolt is the way to go for me. If I were buying today, I would try to check out a Niro as well as that might work for me as well, but since they’re not available…

why on earth would anyone buy a leaf or a bolt now ??

To be different; not everyone is a lemming.

Not everyone has an IQ above 100.

Indeed, indeed.

The same with the Polestar. Who is gonna buy a Model 3 if you can buy a better car for the same price and performance?. Much people will do and it’s fine.

I don’t like Model 3 interior, nothing. I need a 5th door. I don’t like big cars. I’m concerned about Tesla realiability. Where I live there is no Tesla support…. I’m happy with this new cheap Model 3, I respect all the people will buy it, but not all us have the same likes, needs or situations.

Try moving something big in your TM3. Leaf and Bolt are hatchbacks – more versatile.
But other than that, I tend to agree. GM and Nissan are going to have to drop their prices to answer your question.

Just rent a van.

Bolt and LEAF both have high seating and regen-to-stop capability. Model 3 does not. Those are very important factors for some people, including myself.

OK, so an update should do the trick…

The model 3 has regen braking.

What a a min. They closing down their stores ?

I believe them when they say it’s a prudent financial decision at this time. Building out the service centers’ abilities makes more sense now than ever before.

Not their service centers. It’s a hard pill for some, but a brave move at least during the volume they will move for a while. Bought my last two cars online (2012 Volt, LR RWD Model 3). Plenty of people will seek out existing owners to get a much deeper test drive than what they otherwise would at a store. Tesla still needs money and it is a bold way to reduce a huge overhead.

Nothing is free. I would rather research the crap out of a car online and have the right to return it after seven days than to take a weak test drive that typically takes place on less than performance roads outside a dealership. Just one more paradigm shift.

Purchasing a Pacifica Hybrid through Carvana now. Take ownership next week. I was surprised by how easy and slick the online process has been. With the notable exception of calling them up to get questions answered which always lead to long hold times. But online doc signing was a super breeze compared to the normal dealer experience. Their whole setup felt like the future. So hearing the news about Tesla axing stores and going all online seems like a great plan to me. Haven’t bought a Tesla yet (waiting for the Y) so I don’t know how slick the purchase would be. Especially living in Texas.

I think you will see more people renting an EV before buying also.

Yup. Online ordering only.

Service centers obviously won’t be closed down.

So if Tesla is closing most there showrooms can Service centers be placed in any state in the US now? That might get around the problem Tesla has had with some states locking out Tesla showrooms. The car dealerships can’t really use the same argument with Service Centers that they used with showrooms. No sales being done in the Service Centers.j

they will soon be selling on Amazon.com

Not sure shutting down the stores is a great idea….

It’s risky for sure, but I think in hindsight will be viewed as great move.

Yup, I see it as a gamble. We’ll have to wait and see if it works out for Tesla. It may be that they will wind up re-opening some stores. Not predicting that will happen, but I won’t be surprised if it does.

I agree. Over the next two years, they have so much demand, they do not really need the stores. Plus they will continue the marketing events to target specific groups. But once sales reach very high levels (GF in China and perhaps Europe), they need to preach to the non-converted and for that they may need stores again.

Think you will find the highest traffic probably stay open or in the largest cities as well. Most will be closed though. This give Tesla the perfect excuse to close under performing showrooms.

I think short term yes, it’s a good idea. Long term no, it’s not a good idea.

And if that is the case, in the long term they could always bring them back in some fashion.

In the past they have talked about going to a dealership Model.

Only in the context of being forced to by government. Or when the vast majority of the new car market is BEV and dealers don’t try to convert BEV intenders into ICEv owners.

I think it’s a good idea long term as well as short, they will have Galleries for people to see the cars and they will still have test drives available.

Why have brick and mortar sales, I think in the end people will be fine with this method of sales. And if not as Get Real points out below, they can always reinstate them. But I suspect they won’t have to.

Last I saw, Galleries don’t do test drives. Only Tesla Stores do those.

But maybe Tesla will start offering test drives at Delivery Centers?

Galleries don’t do test drives where they are prohibited by law. Everywhere where Tesla has a store they are allowed to give test drives.

Maybe Tesla should rent (test drive) cars at the delivery centers

Turo seems to already be taking care of that.

I dunno; long term, perhaps all they need is regional Delivery Centers and service centers. But they’ll need to build Delivery Centers all across the nation, not just in California.

Seems like an excellent idea to me. Tesla’s cars sell themselves and the only demand problem they have right now is too much of it. Why have any sales people in such a situation? Especially when you can pass all those savings on to the customer, make a more competitive product, and further the mission of accelerating renewable energy and transportation.

Personally, I like the idea since it will help lower the cost of the cars. That will be a lot of savings in rent, utilities, salaries, etc.

Where I live the streets are flooded with Model 3 cars so you see them anytime. But if you’ve never seen one, I can see it being annoying.

I wonder if they’ll add an app to let existing owners show their cars to others in exchange for Tesla swag.

Folks are already putting there Tesla’s on Turo.

Good moves. I’ll be order a model 3 performance because of these changes.

Wow, 325 mile range is super, now Electrics led by Tesla are upping the game and other automakers have to follow.
This will leave Polestar 2 far behind.

I also felt like upping the rated range to 325 was in response to Polestar 2 specs release. The LR RWD Model 3 was previously being rated below its actual EPA tested range so it seems smart to go ahead and rate it higher as competitors come trying to tempt people away from Model 3.

So that customer can compare like with like, Tesla can’t sandbag figures anymore once competitors are external instead of cannibalizing own sales of Model S, for example

Too late. I got tired of waiting and bought a used Leaf for $11K. I could not be happier.

Sure, till you need to replace the battery. Get ready to drop another $8500 then.

Maybe. I bought a used leaf almost three years ago now. Have put 40,000 MORE miles on it to a grand total of roughly 75,000. Lost my first battery bar at 69,000. This car will easily last me another 3-5 years, although I will likely give it away before then. Not bad for $9,700.

Much after ICEv need to replace the transmission and remanufacture the engine.

Scott, Nissan has a battery replacement program for out of warranty replacement – $2995

lol

I seriously doubt a guy spending $11K was actually waiting for a car he would end up spending almost $40K on including paint, destination charge and so on.

The robots that didn’t work out on the production line in the beginning are likely back in service.

Some of them, sure. But Tesla hasn’t been able to completely automate the assembly lines, and likely they aren’t still planning to do so, at least not in the near future. Some things really go better with a human being doing the work.

Tesla learned that it’s easier to automate the sales than the production? They have been cutting costs all over the place!

Some of those robots that didn’t work out might get sent to the China Gigafactory. I am sure Tesla will try to use line manufacturing stuff that is just sitting a warehouse somewhere.

Standard interior and partial premium interior keep the in tinted glass roof, auto folding/heated mirrors.

Thought they would keep the glass roof.

Tinted glass roof and auto folding mirrors are all extra costs they can still reduce in a trimmed down version.
By the way some would like a non glass roof even at a premium.

The problem is that very little of the roof can be body. The windshield slopes far back, and the rear glass goes all the way up to just ahead of the rear seat occupants. The only part that could possibly be made metal would be that 2′ strip above the front seats.

A prospective Nissan Leaf buyer can buy a Tesla Model-3 for an extra $5,000 which gets an additional 70 mile range + supercharger facility. When it comes to interior space Model-3 is slightly bigger if we include the frunk space.

Will Model-3 lure some Leaf buyers. This may also challenge the EVs from Hyundai/Kia.
Does anyone see any price adjustments here.

Certainly some prospective Leaf and Hyundai/Kia EV buyers will be lured to the now-lower prices for the Model 3. But let’s not forget that compelling EVs compete mostly with gasmobiles, not with each other.

The EV market is not a zero-sum game!

OF course compelling EVs compete with each other. OF course people looking at Tesla will look a the Korean EVs and German EV and Detroit EVs.

But demand for EVs exceeds supply. So market for EVs will grow and for ICEv it will shrink. As it has done the last two years in Europe,China, and the US.

Demand for EVs doesn’t exceed supply. Demand for GREAT EVs at a competitive price like the M3 exceeds supply.

“compelling EVs compete mostly with gasmobiles”

Which EV at MSRP is compelling besides Tesla? Discounted Bolt at $32K ($25K post subsidy in March 2019) is great, but gascar drivers won’t go out of their way to seek out bargains. Those in the market for EV will look for value, and they’re not going to opt for ho-hum Bolt, especially not ass end of EV Leaf, when Tesla with whole lot more is just couple of thousand more.


A prospective Nissan Leaf buyer can buy a Tesla Model-3 for an extra $5,000 ”

It is more like $8,750 because the Leaf still gets the full $7,500 federal incentive. In 4 months that is going to be over a $9,000 delta. Even so when the plus is actually available Nissan could be expected to cut the price of the 40kWh Leaf. The street price of a Leaf is already at ~$29k. If they cut the price by 2-3 k then after incentives in California you’re looking at a $16-17k new car.That has got to be pretty tempting to a lot of multi-car households in spite of its limitations.

The 220 mile range Leaf is going to be $36,000. Many people don’t qualify for tax credits. I can get a 220 miles range Model 3 for $1000 cheaper than I can get a 220 mile range Leaf.

“The 220 mile range Leaf is going to be $36,000. Many people don’t qualify for tax credits”

Via leasing the full credits can be made available to those who can’t take advantage of them directly. Tat means there will be a significant price difference between the low end Leaf and the M3. Moreover in California, by far the largest EV market in the US, most taxpayers have just gotten a serious federal tax increase via the loss of deductions so a lot of those who couldn’t take advantage before can now.

I’m not saying that a mid range Leaf is a better deal or that it is the car for you or me. I am saying that there is a big opportunity for the mid range Leaf to fill at the low end where the M3 can’t reach. Today that cost difference is $6,000 + $3 750 and that delta will increase by $1875 in 4 months. The delta could quite possibly grow if Nissan sees fit to cutting the price or adding incentives.

Tesla will be opening leasing on the Model 3 sometime late this year. I suspect it will probably be start somewhere around the beginning of the 3 QTR.

Many people don’t qualify for tax credits
Then maybe Tesla should think about that when they are posting prices on their website.

Not many people that can afford $30k plus cars have zero Federal Tax Liability. Some that don’t have federal tax liability this year can bring future tax liability forward.Sure there are some that have near zero Federal Tax liability that can buy a $30k plus car but not many.

At some point Nissan starts losing money if you keep cutting prices. Not even Nissan can do that.

The Leaf is a hatchback and many people don’t want sedans. Also, the options for the Leaf are much cheaper: the body paint at Nissan costs 150-850$ vs 1500-2500$ at Tesla.

Based on the chart, traffic in the navigation is only available in the premium interior. Is that correct? If so, then they want people to upgrade to the mid range for that.

“Satellite-view maps with live traffic visualization and navigation” for premium and
“Standard maps & navigation” for standard and partial premium.

I found their faq on this, navigation seems to include traffic but it is not visible. On the premium interior this is standard but with a $100 fee after the first year. In either case, it’s not a “standard” feature as it seems it will be an extra cost option.

This is all great, but when will it come to the UK?

Approximately July for Right Hand Drive markets including Australia and Japan.

Yeah Musk said it would be the middle of 2019 before RHD markets see the Model 3. By that time all price changes will be in place.

My guess is earlier than scheduled.

I purchased FSD in advance. So will I get the new hardware now instead of later? When can we expect this to happen? Soon?

I thought I read that the cost of FSD at the time of purchase was reduced from $5,000 to $3,000. But bullet point #10 says the opposite.

How much does the Adaptive cruise control (AP) cost if you buy it after delivery? I can’t imagine a new car over without that option.

AP (the $3k option) has emergency braking (for vehicles and pedestrians), automatic lane-keeping, and adaptive cruise control, from what the press release says. Currently, after delivery, it is $4k.

Why do they keep on binding the interior type with the battery size? Those two things are completely different. I want standard tissue interior but the long range. Range is what I want to pay for not the premium interior and associated enhancement costs.

Perhaps so, but Tesla can do only so much for cost reasons. I’m amazed at the number of configurations that they are offering. Very much surprised (pleasantly).

The longer-range packs also provide shorter zero-60 times and higher top speeds. I am not aware of any sedan or SUV/CUV that has an upgraded powertrain with a base interior. It might be possible with sport coupes, muscle cars, Jeeps and pickups, but that’s it.

Because they won’t make money if they do that. Adding features is a way to justify increased price, and you can’t see how much the added range cost due to the added features.

I have a sneaking suspicion that a lot of the cost reduction for making those prices possible comes from closing those stores. The problem with that is that cars aren’t a typical mail order article, one would like to experience them before making such a major investment I think.

So yeah, I would call this a gamble and maybe a rather desperate one at that.

A “rather desperate” gamble by Tesla would be providing some free test drive Turo rentals on the Model 3.

A 3 day rental reimbursement ( up to $420. ) would be allowed, if there is any Tesla purchase within 90 days of the Turo rental.

deleted.

Tesla will have to do something to give the people the opportunity to experience the vehicle before buying, maybe deliver a test vehicle at your home, or fitting out the service centers with a fleet of test vehicles.

First, GREAT job on this summary. Just what I was looking for.

This is really impressive by Tesla. I did not think they would be selling the $35,000 M3 this year. This combined with the price reductions of the other models really puts pressure on other automakers. How are they going to make money at these prices?

The closing of stores seems like a bad move to me though. They have to close stores to cut expenses so they can make enough money on this Model 3? It sounds like they should raise the price then instead. I think test drives add sales.

Tesla couldn’t get the Model 3 down to $35,000 without cutting costs and at the same time keep their margin in place. I suspect that they still need to get the Fremont factory more efficient also to cut costs there as well. The China factory will be as lean and efficient Tesla can make it. Won’t be any fat there.

I’m going to be REALLY interested to see how many people buy the $35,000 model vs. the plus vs. self driving upgrades. They have made the pricing so that most people who have been waiting for the 35K model will purchase the upgrades.

I think most will go for the Plus TM3.

Troy – nice summary. Question – Have you got a reference available or other basis of understanding that supports the idea that Tesla have been accounting for a portion of revenues from some delivered “FSD” vehicles as deferred revenue?

The 10-K says they recognize revenue on FSD as features are delivered. They hadn’t delivered any features, so no revenue.

They accrue interest on it though?

Great to see lower priced BEVs. And it doesn’t look like it has many less features, just less luxury.

But Tesla, discounting your vehicles with repeated price cuts for the same vehicle (and features) when there is basically no competition screams demand issues. Why are you messing with price (i.e. perceived value)? You’d be better off with leasing (and selling the leases to financing companies to get $$ now).

Promise made promise kept, happy! Leasing is coming later in 2019.

I can imagine that the number of Tesla’s on the road will almost double again within the year, as it did last year. I am starting to see that Superchargers are getting more and more crowded in California and to wait to charge is getting more common. Either there needs to me more Superchargers or policies have to change to limit Supercharger use for local drivers and people that keep their chargers plugged in too long. I see people who wait more than 1 hr to get their car charged to 100% because they don’t know any better and they are getting charged by kwh.

Last I heard, Tesla is cranking out more locations, and more plugs at existing stations, as fast as humanly possible.

Does anyone have information on what “upgraded audio” actually means? Number of speakers? Amp? Sub?

Very happy with the timeline of this. My oldest turns 15 today. She won’t drive until she’s 16 and perhaps by the time she’s 18 and preparing to go to college, the first SR Model 3s being sold today will start to go on the used car market and we’ll be able to get her a nice BEV in the low- 20’s.

Well … Musk Me Running once again! He’s done it, albeit in a monochromatic fashion, but hey you can’t have it all at once. This is a great step forward for Tesla and for the EV community. With the Chinese manufacturing plant coming online this is going to make this happen sooner rather than later.

There is going to be a lot of used model 3’s in about a year for really cheap.

Doubtful. Used EV prices are pushed down because the fed incentive makes a new replacement cheaper. So used prices for a low mile starts 7.5k lower than new price.

But new Tesla’s only get state incentives. So resale prices of cars at their current price will likely be very strong.

Actually, the more I look at the stats, I begin to think that the SR pack is its own thing, and that the SR+ is a software-limited MR pack – the 0-60 time for the SR is 5.6, but the SR+ is 5.3 and the MR is 5.2 – that leads me to believe that there are more cells in the SR+ & MR than there are in the SR, and the decrease of only 0.1s is consistent with a software-limited pack capacity, as opposed to a pack with more cells.