Tesla Starts Taking Orders for Shorter-Range $45,000 Model 3
(Bloomberg) -- Tesla Inc.’s long-promised $35,000 version of the Model 3 sedan is still nowhere to be found, but it’s inching closer to that price point.
The electric-car maker has started taking orders for a mid-range battery Model 3 that goes about 260 miles between charges for $45,000. That’s about $4,000 less than the starting price of the sedan that went on sale last year, excluding incentives or options.
The release of a lower-priced Model 3 was a “logical next step,” Evercore ISI analyst Arndt Ellinghorst said in a note. Offering cheaper versions of the vehicle raised a “big and unanswered question” of Tesla maintaining profit targets for the car, he said.
While Tesla is making the Model 3 more accessible to some buyers, the starting price for sedans with the long-range battery is rising to $54,000. This iteration of the car boasts 310 miles of driving range, plus a faster top speed and zero-to-60 time. A cheaper rear-wheel version will no longer be available.
Musk, 47, first unveiled the Model 3 to great fanfare in March 2016, pledging that it would start at $35,000 before incentives. Within days, the company had more than a quarter million reservations. While he has yet to deliver on that sticker price two and a half years later, demand has been strong, with sales rivaling some of the top-selling passenger cars in the U.S. last quarter.
Tesla shares rose 1.3 percent to $267.43 in German trading compared to the previous day’s U.S. close as of 10:45 a.m. in Frankfurt.
That long-awaited price point may still be another few months away, Musk suggested in a post on Thursday describing the mid-range Model 3.
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