Published: Fri, October 19, 2018
Business | By Eloise Houston

Tesla now sells Model 3 with 260-mile range, $45,000 sticker

Tesla now sells Model 3 with 260-mile range, $45,000 sticker

Musk late Thursday announced Tesla's lowest-cost version yet of its newest auto, with the CEO writing in a tweet that the mid-range Model 3 "costs $35k after federal & state tax rebates in California", but pegging its ultimate ownership cost at an even lower price point given the money saved not buying gas.

Tesla's new midrange Model 3 will offer 260 miles between charges and start at $45,000.

The release of a lower-priced Model 3 was a "logical next step", Evercore ISI analyst Arndt Ellinghorst said in a note.

Elon Musk took to Twitter (where else, right?) on Thursday evening to inform his followers of a new addition to the Model 3 lineup.

The more affordable Tesla sports a 260-mile range, a 125 miles per hour top speed, and goes from 0 to 60 in 5.6 seconds.

The self-driving capability that Tesla Inc. customers have been able to pay for but not activate for two years is going on hiatus. That's a timeline that could just eke a number of cars through for delivery-especially perhaps in California and on the West Coast-in time for the full $7,500 tax credit.

Musk said Tesla has set up a new web page to take orders for the lower priced Model 3.

Tesla has reshuffled its Model 3 lineup and is now offering the cheapest version yet, but it's still $10,000 more than the long-promised $35,000 entry-level auto.

The move could ratchet up the pressure on Tesla's already-straining California factory and its nationwide system built to deliver cars to customers, which Musk described last month as mired in "delivery logistics hell".

Tesla 3 model has been available for $49,000 with a long-range battery and no options for over a year.

However, Tesla is promoting the auto as costing as little as $30,700 by factoring in "gas savings" and all possible federal and local electric vehicle tax incentives (but not the destination charge). Must said in May that shipping the cheapest, "standard" Model 3 before the pricier models would have caused Tesla to "lose money and die".

The midrange version has the same battery pack as the long-range model but uses fewer cells.

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