Tesla Chief Information Officer: Model 3 Price Target Is $30,000 To $40,000


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Usually, it’s Tesla CEO Elon Musk who hints at pricing for the upcoming Model 3.  However, this time it’s Tesla chief information officer, Jay Vijayan, who provides us with Tesla’s Model 3 price target:

“Our target price for Model 3 is in the range of $30,000 to $40,000 that makes it an ideal product in the luxury car segment.  India is a huge potential market, but we need to have more affordable and economical cars.”

Vijayan was discussing Tesla’s future plans in India, which includes the possibility of constructing a factory there, but what piqued our interest is that someone other than Elon Musk confirmed this less-than-$40,000 price target for the Model 3.  Let’s hope Tesla can deliver on this target.

Per the Economic Times:

Tesla Motors, the world’s most successful electric car maker, plans to enter the Indian market with its upcoming sedan that will be priced at less than half of its existing model even as the country’s high import duty remains a big obstacle, a top executive said.

“India has one of the highest import duty in the world — in excess of 100% — that goes against our principal of importing car directly from our plants at Freemont in the US or the assembly unit in Netherlands,” Vijayan said.

“We have identified India is one of the potential markets in Asia to have a local assembly plant, but we need a definite policy from the government to support electric vehicles in the future,” he said. Tesla plans to start a dialogue with the Indian government to rationalise import duty on electric cars and also develop a separate category for such vehicles.

Aside from China and Japan, India is clearly the biggest remaining market in Asia.  Tesla would sure like to capture a significant portion of India’s now-growing plug-in vehicle market.

Source: Economic Times

Category: Tesla


93 responses to "Tesla Chief Information Officer: Model 3 Price Target Is $30,000 To $40,000"
  1. kdawg says:

    Take my money!

    (* and faster please)

    1. Waiting says:

      Screw the rest of the World!!! I’m 66 years old and would like to own a Tesla before I croak! Get the damn $35,000 Tesla 3 in the U.S. first, then entertain the rest of the World. Just my two cents worth.

      1. Johnmb says:

        Exactly that’s why I got myself an i3… If range is not a problem why wait, and the car is awesome!

        1. JP says:

          Traitor! 😉 Good for you, Johnmb; at least you went EV.

        2. Francois Parent says:

          My only issue is that it’s ugly looking. Why not stick with the BMW looks?

        3. EdwardF says:

          I’ve got an i3 as well. We love it. People wave at us or come up and ask to have a closer look regularly during the 5 months we’ve had it. We see it as a nice complement to the upcoming Model 3, but if they jamb a giant monitor in the dash like the Model S we may have to evaluate other EV or PHEV options…..it’s like a bad transporter accident merged them together.

      2. Aas says:

        When you “croak” it’s not your problem anymore. So, why care?

        1. Lustuccc says:

          Selfishness vs ecological altruism.
          And the sheer pleasure to drive electric.

      3. Naturenut99 says:

        The US will get the Model 3 before the rest of the world.
        The speech was not in the US. They are just taking apart the speech and telling us something that has been said over and over again. We already knew the price range they were going for.

        Where the speech was delivered, in this case, doesn’t mean much.

      4. Irwin says:

        I to would love to see it in the US

  2. kdawg says:

    “Aside from China and Japan, India is clearly the biggest remaining market in Asia.”
    I think South Korea is a big player too with over 20 million registered vehicles.

    1. Mikael says:

      The Indian market is twice as big today and growing fast. But South Korea is number 4 by a distance to other Asian countries.

      And some of the hunting asian countries like Indonesia, Iran and Malaysia have a different standard of cars than South Korea.
      But the support of local brands in South Korea might make it an less interesting market.

      I would consider Saudi Arabia as the next asian country for Tesla to expand to. Half the market of South Korea but no local brands and a taste for higher end cars.

      1. Mike I says:

        From a global marketing standpoint, Iran and Saudi Arabia are generally lumped in EMEA (Europe, Middle East, Africa) rather than with Asia.

        1. Brian says:

          Maybe so, but geographically speaking, the Middle East is part of Asia.

        2. Mikael says:

          You don’t “lump” it together with Asia. It is Asia.
          But then you can always have your own names on specific regions or use parts of continents or names of economical (or other) connections if you want people to look at a specific part.

          It’s hard enough at it is for kids (and adults) to know their basic geography as it is so I’m sure that there would be people not knowing that Sadui Arabia and Iran are Asian countries.

          There are unfortuneately too many places that people could not put in the right one of the seven continents.

      2. SH says:

        The Philippines is potentially also a big market considering all the ongoing activities.

    2. Pat says:

      Koreans tend to buy Korean and pretty much limit themselves to one car per family. They have great mass transit and fantastic highways with sweet regen heading east or west. The also have massive traffic jams where an EV would shine.

      1. Mikael says:

        If only they would take away their law against EV’s on highways 😛

  3. Brian says:

    Well, this is interesting. They may come in under my $42,500 estimate ($35,000 after tax credit which they would naturally push to extend).

    Of course, given that he is talking about India, this could just be the price in India, could it not? Besides the import tariff, does India have aggressive taxes like Europe?

    1. Abhishek says:

      As per the current taxation policy, cars with a landing cost of over $40,000 (around Rs 22 lakh) face 100 per cent customs levy, and those below that pay 60 per cent import duty. But India expects FTA with Europe which can reduce duty to 30%

      1. Brian says:

        Interesting. So if I understand you correctly, Tesla would get a reduced import tax if they end up below the $40,000 mark? That’s a good reason to have that target.

    2. Rob Stark says:

      In all likelihood Tesla will have used all or almost all of its 200k allotted Fed Tax Credit slots by the time Model 3 is introduced.

      Elon has said repeatedly the Model S will be half the cost of Model S with a starting price of $35k, which is half the price of the base Model S.

      1. Brian says:

        You really think that Tesla will sell 200,000 cars before they get the Model III to market? I personally think the first 100,000 Model IIIs will get the credit. That’s easily the first year’s production as they ramp up.

        Then Tesla petitions the government to extend the credit since the early movers will then be hurt in comparison to the slower companies (like Toyota, if they join the EV bandwagon). That is, assuming Nissan and/or GM hasn’t already successfully petitioned for an extention.

        1. Lustuccc says:

          There are 68 000 Model S sold right now, and production is still increasing.
          Next Year there will be to chains, one S and one X. The goal is to produce 100 000 of each model in 2015.

          1. Brian says:

            Half of Tesla’s sales are outside the US and therefore irrelevant to the discussion of tax credits. I expect exports to continue to increase faster than domestic sales.

            1. koz says:

              Not close to half but a decent number are out of country and current are close to 50/50. 2015 goal is 100K total not 100k of each S and X. If current projections prove accurate Tesla will have about 50K credits left heading into 2017. By the time III production starts they may be out or close to it. It would be folly to target development on the assumption tax policy will be changed in their favor. They should assume no credits will be available for III.

              1. Mikael says:

                2015 goal is 55-60k, with more than half going to other countries than the US.

                But since the Model 3 probably won’t be here before late 2017 or 2018 they might have sold most of the 200 000 cars getting credits.

                It’s not more than 60 000 cars sold including the full year of 2015.

              2. Lustuccc says:

                Sorry, my mistake. But with the new delays for the Model X, Maybe it will be more like 80 000 total production for 2015.

                1. Mikael says:

                  80 000 would be an extremely optimistic number. If they would reach 60k in 2015 it would be a huge success.

                  1. Ocean Railroader says:

                    I personally don’t think Tesla is going to get higher then 50,000 cars built during 2015. Most likely they are going to get 40,000 built.

  4. Breezy says:

    “Our target price for Model 3 is the range of $30,000 to $40,000… ” I’m thinking $40k, not $30k. 😉 “…an ideal product in the luxury car segment” is the statement to focus on. A luxury car is not a mass market car.

    1. Lustuccc says:

      Luxury for Indian consumers.
      From 30 000 $ Basic to 40 000 $ full equipped 🙂

    2. AddLightness says:

      Average new car transaction price in the US is around $32,000.

      1. Ocean Railroader says:

        I think the average price of $32,000 is shifted a great deal towards one end of the graph by the high priced outliers like Tesla’s Model S and other expensive cars. In that personally I feel the average price would be around $20,000 to $25000 if you cut out all the cars higher then $45,000 being counted into the average.

        We talked about stuff like this in a collage I remember taking that the outliers really can shift things around in data sets.

      2. Dan says:

        That number is including trucks and SUVs, which are not comparable to 5-passenger sedans.

    3. Josh says:

      BMW sold 350k 3 series in 2013 and 300k in 2012. Pretty mainstream to me and at a similar price point.

    4. Breezy says:

      I understand how the Model 3 will be closer to mainstream and steal sales from the 3-Series, but it’s not mass market.

      There’s nothing wrong with Tesla being a manufacturer of premium electric vehicles.

      1. JakeY says:

        If you want to be pedantic you can call it “mass luxury”.

        It however still depends on how they position it relative to other EVs. The Leaf costed as much as 3 series at launch (it’s still only slightly less) but there is no one that doubts that it’s a “mass market” EV. People accept that there is a premium charged for the drive-train type (as they do with hybrids). So it’s possible for the car to cost more than an equivalent ICE vehicle, but still be “mass market”.

        1. Ocean Railroader says:

          I personally don’t think the leaf is a main stream car yet. In that it can only go 80 miles on a charge and it’s price point is $25,000. The leaf’s low range is really what is holding it back.

          As the BMW i3 I think they should stop comparing it to Tesla in that it has a 80 mile range and a recommend price that is double that of the leaf. But it only has 80 miles of range.

  5. CherylG's_DirtyLittleSecret says:

    Is this before any tax credits/rebates?


    1. Abhishek says:

      Government Of India is proposing a 2 Billion Dollar incentive for Electric & hybrid cars but its pending for last 2 years

      1. QCO says:

        Yeah, this chatter appears to be intended solely as a poke for the Indian government to get going on some incentive plans. The idea of promising a factory in India is a classic move to generate dialog.

        Nothing new here for North America.

  6. Anon says:

    Will the body panels be plastic, like the Pontiac Fiero?

    1. John Hansen says:

      I’d sure like it if they were fiberglass, like Saturns. There are still a LOT of old Saturns still running around, long after all the other cars the same age rusted to the ground. Those fiberglass body panels were the biggest thing lost when they pulled the plug on Saturday. Well, that and the no-haggle dealerships.

      1. ModernMarvelFan says:

        “fiberglass, like Saturns”

        Saturns were NOT fiber glass. They were composite/plastic.

        I owned one for over 16 years and the panels still looked good after 16 years.

        1. Steven says:

          I thought they were polycarbonate.

      2. ModernMarvelFan says:

        BTW, those plastic panels on the Saturn were great at resisting dents, but they were terrible against scratches. Anything sharp will “peel” the paint off.

        The paint weren’t hard like traditional paint, they were flexible and easily peeled if a sharp tool penatrates it first and then pulled the top layers off…

        The rust resistance portion is very true.

    2. Tech01x says:

      Well… the i3 uses plastic body panels and that might be a good way to go.

      1. koz says:

        i3 has carbon fiber not plastic

        1. Big Solar says:

          carbon fiber reinforced plastic….

        2. Body panels are actually plastic.

          Mazda has a new “no paint” plastic panel.

    3. Spec9 says:

      Plastic would be just fine with me.

      1. Grendal says:

        I have a Saturn and totally agree. It works great. It makes it easier to upgrade to carbon fiber for an additional charge too. 🙂

    4. Rick Danger says:

      Wouldn’t bother me a bit if they were plastic.

  7. This CIO message, heard I have …

    “We will be releasing our Gen III car in 3-4 years with a targeted price of $30-40k!” – @TeslaMotors, Dec 10 2013

    “Stay tuned for our Gen III car in 3-4 years! We’re targeting a $30k-$40k price.” – @TeslaMotors, Jan 4, 2014

    “Targeting somewhere around $35k.” – @TeslaMotors, Mar 10, 2014

    “We’re targeting a price around $35k.” – @TeslaMotors, Mar 30, 2014

    … just a few of many replies …

    PS: with tweets being over an year old, the “3-4 years” quoted is now likely ‘2-3 years’. 🙂

    1. Francois Parent says:

      2-3 Tesla years = 4-6 actual years

      1. Lustuccc says:

        Mon cher François, the delays for Model X are due to the tremendous sales of Model S and SD, NOT because of the falcon doors.

        Big Oil Medias could not take this success as a reason to trashtalk Tesla, so they found a negative imaginary reason.

  8. Blind Guy says:

    Once the Giga-factory is producing; I wonder if Tesla has considered electric scooters. India & China come to mind when I think of the average consumer there using scooters, no offense intended.

    1. EVBlogger says:

      Nothing taken… Though i drive 3 cars in US one being Leaf, i still wonder, do u still need apart from luxury. I still cherish days when i dove 100 cc bikes on Indian Roads

      1. Around the Block says:

        If you “cherish” the memory that much, what’s stopping you from going out and buying a 100cc bike tomorrow?

  9. David Murray says:

    Still haven’t heard if this price target is before or after federal incentives. I suspect after.

    1. Abhishekifmr says:

      Currently no federal(central government) incentive. Some states provide some incentive but that is very little

    2. Mikael says:

      Before incentives. It’s been “confirmed” (as confirmed as a fictional price on a so far fictional product goes 😛 ) by Elon an others at Tesla.

      1. Grendal says:

        On many occasions at this point.

      2. Josh says:

        Yep. Musk also said he figured they would be past the 200k vehicles when the Model 3 hits volume production.

        I am not sure this will be true unless it is delayed, but who knows.

        1. Around the Block says:

          You can be sure that the launch will be delayed. Elon Musk has never once told the truth about a production launch, or about a vehicle price. He’s straight out of Silicon Valley, where lying is the currency.

  10. Abhishekifmr says:

    I want Tesla to think seriously about manufacturing in India for Asian markets. Currently Suzuki, Hyundai, GM, Ford export their vehicles from India.

    P.S: i wish i can be first buyer of Gen 3 in India

  11. Whatever says:

    So in other words, nothing new here…

  12. Spec9 says:

    So that means it will cost about $47,500.00

    Not bad.

    1. Brian says:

      Model III: starting at $47,499.99

      1. Spec9 says:

        Exactly. And that might be an acceptable price. It really depends on the market at the time though and whether the car is as nice looking as the Model S.

        1. Grendal says:

          It will be that price with the larger battery pack.

    2. JakeY says:

      Elon was very clear that his estimate of the base model does not include the tax credit (which might not even be around anymore by the time the car comes out). However his figure of $35k is in 2013 dollars, so by 2017 it’ll perhaps be around $40k.

      However, a $47k base MSRP will be disappointing. That’s okay for average selling price, but not for a bare bones base model.

  13. Steve says:

    If the car starts at (eg) $35k before the $7.5k tax credit, then that would be awesome. Maybe too optimistic — but who knows.

    1. Around the Block says:

      The price will be $40K AFTER the credit, which a lot of people won’t get in full. Add options, and the sticker will be $50K. This is Tesla’s history. They have never met a production deadline they didn’t break, nor have they ever hit a price target.

      Want to know when Elon Musk is lying? Check to see when his lips are moving.

  14. boB says:

    Meaning $39,990. Still, if it is nearly as good as the “S”, it will mean serious problems for BMW 3 and Volt.

  15. ModernMarvelFan says:

    Yes, but it doesn’t mean it will have 200 miles range at those price.

    You want leather? $3K option…
    You want SC? $3K option..
    You want wheels? $2K option
    You want 200 miles real world EV range? $15K battery option.

    Sure, it will start at $35K, but it will be soon cancelled due to “low order rate” b/c the $35K version will only have 120 miles range and no options…

    1. Breezy says:

      Not far from the truth, I’m afraid. That’s how Tesla operates.

      1. Grendal says:

        That’s how every car manufacturer works.

        The base model will have a 200-ish mile range. The larger battery pack will be an additional $10K and get you 250 to 300 miles on a charge. The Supercharger will probably be an additional fee for a base model just like it is for the Model S. Probably $2K also.

    2. Spec9 says:

      Well, I hope the base model at least comes with wheels. 😉

    3. Big Solar says:

      I would consider a 120 mile tesla at 30 to 35k….

      1. Mikael says:

        I assume you wouldn’t opt for the supercharger option then? 😉

        Maybe with a gas range extender 😛

      2. Around the Block says:

        The sticker price after ordinary options will be $50,000. Just wait, you’ll see.

  16. Ryan says:

    They better have it already designed if they think it’s going to be made any time soon.

    Maybe start now instead of later on the assembly line?

  17. Delta says:

    I must buy Tesla stock. If Model 3 materializes, there really is no stopping Tesla. BMW is obviously their target. And BMW knows it. And they have been forced to respond.

    Is this true Capitalism? Is this David and Goliath?

    1. Peter says:

      Tesla i David for sure and is about to give Goliath a headache. But the market segment is so big there is room for them all.

  18. Peter says:

    I would like to give my Model S a new smaller friend like the 3.
    BMW I3 is a option.
    But SC gives model 3 the upper hand.
    So I plant to wait.

  19. MDEV says:

    $200 per Kw/h for a battery of 60 is just $12000. It seems to me they still have $28000 to produce a nice middle size car, a Hyundai Elantra is $14.000 a well designed car, I think Tesla can make it, for a total of $33500 after tax.

  20. taser54 says:

    Ahh the old, “Do we believe Tesla regarding price and timetable?”

    I wonder what the company line will be for the Model 3 delay next year.

    1. Ocean Railroader says:

      Tesla’s delays with the model X and Model 3 are why I’ve lost my faith along with the wow in Tesla.

      I’m however very pleased with SpaceX in that they are now basically now the US manned space program. In that Elon Musk is working on a moon rocket right now for the next two years. While NASA’s Orion won’t be ready for another 15 years.

      What’s funny about this is that by the time Orion gets done it will obsolete by SpaceX’s moon rocket next year.

      1. Stan says:

        “Tesla’s delays with the model X…”

        If the firm is production constrained, there is little for them to gain by offering this vehicle at this point. Manufacturing and selling two cars when one can keep your factory humming flat out just raises costs.

  21. Tommy says:

    Like an Audi A4 with a 3 gallon tank that takes 5 hours to fill, only so much trendier.