The $35k Tesla Model 3 Is Finally On Sale

The $35k Tesla Model 3 Is Finally On Sale

The $35k Tesla Model 3 Is Finally On Sale

The Model 3 is "excruciatingly difficult" to make at the reduced price, Musk later told reporters on a conference call.

The move to e-commerce only will require Tesla to reduce headcount in sales, CEO Elon Musk confirmed.

The Model 3's new $35,000 version will have a 220-mile battery pack range.

The news comes three days after renewed tensions between Musk and US Securities and Exchange Commission.

"While the US$35,000 price is likely to boost demand, the company's plan to move to a primarily online only model was very surprising and we see it as a serious barrier for a large swath of potential customers as the company looks to enter the 'mass market"'.

Musk reportedly blamed delivery problems and the expiration of a U.S. tax credit for some of the company's woes.

"To achieve these prices while remaining financially sustainable, Tesla is shifting sales worldwide to online only".

Tesla has been gradually releasing cheaper versions of the Model 3 over the previous year, but it has never been able to bring the price down to $35,000 - the mass market price that they have been promising.

But Tesla's admission it would not, as it had previously said, turn a profit this quarter, has spooked investors - as has admitting it needs to lay off workers and scale back its bricks-and-mortar presence in order to make good on a long-held promise is of concern. Some jobs will be cut and some employees will transition to different parts of the company, he said.

Not all stores will be closing, though. The store closures have raised concerns over the company's future plans in the United Kingdom, with fears of further cuts and job losses across the country.

To save money, Tesla will close many of its stores but leave some open as galleries or "information centres" in high-traffic areas.

He said: "This is the only way to achieve the savings for this auto and be financially sustainable".

Tesla is shutting down all of its retail sales operations, so if you want to buy its cars, you'll now have to do it online. He said moving away from stores will be "incredibly helpful" toward boosting deliveries.

Tesla shares were last down 8 per cent at US$293.57. But Tesla had never managed to sell the vehicle at that price.

Meanwhile, the customers that Musk often thanks for putting their faith - and hard-earned dollars - into Tesla are penalized each time the company slashes prices.

He said that by the end of the year, Tesla's long-promised Full Self-Driving system will be "feature complete", but that it will still require drivers to remain engaged and pay attention, just as the company says is required with Autopilot.

The CEO doubled down on his defense against the SEC's claims by reiterating comments he made on a January 30 earnings call that Tesla would sell as many as 500,000 Model 3s this year. Musk said that Tesla will hire technicians accordingly. "And we expect to make somewhere between 70,000 to 100,000" Model S sedans and Model X crossovers.

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