Tesla: Model 3 Will Be $35,000 Pre-Incentives, Taking Orders In March
The question of “Will the Tesla Model 3 really keep the $35,000 price-point that CEO Elon Musk promised so many years ago?” has definitively been answered.
Seeking final clarification Bloomberg (who always seems to have Tesla’s ear for some reason) reached out to Tesla for confirmation ahead of the first reveal of the Model 3 next month.
“We can confirm it’s $35,000 before incentives,” Khobi Brooklyn, a Tesla spokeswoman told Bloomberg. “We haven’t changed our minds.”
This means of course for the unwashed masses in the United States, the Model 3 will be available from $27,500, while other state residents will do even better – such as an effective starting price of $25,000 in California. Far below the average new car transaction price in the US today.
The new question quite likely will now shift to “How long will Tesla keep the Model 3 priced from $35,000?” as the company has a history of deleting and/or upgrading the base model (at a higher price). But we will leave that for another day.
Given Tesla’s most anticipated quarterly report ever tomorrow after the market close (which we will cover live), we expect CEO Elon Musk to be peppered with questions about the March reveal during the subsequent Q&A session.
Ms. Brooklin declined to give any more information on the car, or steal any thunder from her CEO, but did offer some guidance on the Model 3’s arrival:
“The Model 3 is on time, and everyone is going to learn more about it at the end of March. That’s when we’ve committed to talking about it and giving a really great update, and that’s what we’re going to do.”
Bloomberg also did some math on how long we can expect those $7,500 federal rebates to last until Tesla hits the 200,000 trigger that would start the phase out, and came up with a mid-2018 figure.
As it stands today, the US EV credit phase out begins at the start of the second calendar quarter after the manufacturer has sold 200,000 eligible plug-in electric. So potentially there could be up to 6 further months of credits regardless of the amount sold, followed by 6 months at 50%, and another 6 months at 25%.
See example below: