Published: Sat, March 02, 2019
Money | By Bruce West

$35K Model 3 ready to roll, Tesla says

$35K Model 3 ready to roll, Tesla says

However, as recently as September, the average selling price exceeded $50,000. The company certifies the cars, offers buyers a warranty and has a seven-day return policy.

On Thursday, Musk told workers more jobs will be cut as Tesla winds down most stores worldwide and transitions to online-only ordering.

Musk has often shared that his strategy for Tesla was to build higher-priced cars - the Model S and X - whose success would ultimately usher in a $35,000 mass-market vehicle, followed by an SUV, the Model Y, which is now in development. Numerous company's existing stores will be re-purposed to act as showcases for Tesla products, but some will be closing with job losses. The Model 3 is expected to be available in Australia as of mid-2019.

For Canadian Tesla fans, the new Rear-Wheel Drive base model with Standard Range is listed on Tesla's website starting at $35,900 CAD, after gas savings ($6,700 CAD) and incentives. Also included are an automated parking system and a "summon" feature that allows the Model 3 to leave its parking space and come find you.

Fewer showrooms: How will that work?

All of these decisions are a result of CEO Elon Musk's desire to reduce Tesla's spending and increase profitability. All other new-car sellers in the US rely on independent dealerships to reach customers.

Lastly, for the good news, Tesla will now allow buyers to return any vehicle for a full refund within 7 days or 1,000 miles.

The company is confident that will not happen often.

Musk "doesn't need the whole world to buy into this", Brauer said.

Ultimately, we think this announcement may have been anticlimactic for investors, with the timeline for the launch only accelerated a couple months and as we believe investors were looking for details on new products (Model Y or Pickup truck) and a potential update on Model 3 demand (remaining reservations, weekly order rates, initial global demand levels)...

Why is the Model 3 important?

Strong sales of the Model 3 are critical to that effort. But the company surprised investors by posting back-to-back quarterly profits at the end of 2018.

"It has been insanely hard", Mr Musk said, referring to delivering on the $35,000 price promise.

How self-driving is it?

Less likely to be pleased is the group of new Tesla buyers who have just seen pricing for Model 3, Model S, and Model X cars drop considerably.

However, Mr Musk insisted store closures were the "only way" to generate company sales and reach more customers.

Tesla CEO Elon Musk teased in a series of Twitter posts Wednesday that "some Tesla news" would be released Thursday at 5 p.m. ET.

If you've ever wondered how those enormous Tesla stores in fancy shopping centres make money, well, they don't.

Tesla's long-awaited $35,000 Model 3 electric auto is finally available to buy, just under three years after hundreds of thousands of people started placing deposits for pre-order vehicles.

The hope is that this is the vehicle that brings a Tesla into the affordability zone for a whole new type of customer.

82% of Tesla customers did not test drive a Model 3 before purchasing it. 82% of them! Why?

Tesla has stated that the closing of the physical stores is necessary in order to keep the company financially stable.

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