More news from Tesla regarding the smaller, more affordable Model 3. The Model 3 could end up being even more affordable than previously thought.
This is pretty crazy, since depending on where you are, incentive can cut nearly $10k off the purchase price. There is a federal income tax credit, available to all buyers, that's good for $7500. Over a dozen states offer additional incentives. California, Massachusetts and Tennessee get an extra $2500, Colorado a whopping $6000. That puts the Model 3 in the mid-high $20k range!"We can confirm it's $35,000 before incentives," a Tesla spokeswoman, Khobi Brooklyn, told Bloomberg.
There's a small problem with the $25k Tesla though, well it's really with the federal incentive.The average new car costs about $31,000, according to an analysis by Salim Morsy of Bloomberg New Energy Finance. Almost all the mass-market vehicles sold above that price threshold are SUVs and trucks. There's only one car comparable in size to the Model 3 that amasses more than 100,000 in annual sales with a $35,000 price tag: the BMW 3 Series.
We'll see if Tesla can get production of the Model 3 started early next year. They are usually behind, so, maybe don't hold your breath.It is designed to help ease carmakers into the electric market. The credit is applied to the first 200,000 electric sales for each new manufacturer; then the value of the incentive slowly fades to zero over about a year and a half.
Tesla is on track to reach its 200,000th sale around the middle of 2018.5 If Model 3 deliveries don't start until the end of 2018, and a higher-priced Signature Series soaks up the incentives for 2019, then by the time a "mass-market" buyer gets a shot at a lower-priced Model 3, the incentives could be gone.