Published: Sat, October 20, 2018
Markets | By Erika Turner

Tesla introduces a $45,000 Model 3 variant with a 260-mile range

Tesla introduces a $45,000 Model 3 variant with a 260-mile range

In response, the company promised an upcoming model with a standard battery pack that will remain faithful to the initial price promise. So, if you do go with that option, your sweet Federal Tax credit is going to be diminished.

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

This cheaper model has a top speed of 125mph and does 0-60mph in just 5.6 seconds.

The mid-range Model 3s will be rear-wheel drive only, prompting some to wonder if the company was using software to limit battery capacity on existing RWD inventory in order to get it out of the door.

The mid-range model is one of three main versions of the Model 3 that the automaker is expected to eventually offer - short, mid and long; Tesla has favored offering the more expensive versions first for financial reasons.

Key Fed official backs further gradual rate hikes
Trump's public berating of the Fed could perversely be having the opposite effect than the president intends, many economists say. Some are beginning to question president Trump's remarks as an action to influence the behavior of the Federal Reserve .

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. Offering cheaper versions of the vehicle raised a "big and unanswered question" of Tesla maintaining profit targets for the auto, he said. That incentive will be cut in half for the first six months of 2019, and then gets halved again for the following six months. CEO Elon Musk recently noted that focusing on the cheaper vehicle first would cause Tesla to "die," because it's not profitable to make.

The surprise announcement, delivered via tweet to Musk's 23 million followers, comes as Tesla seeks to steer attention away from a chaotic period in which Musk battled with critics, smoked marijuana during an interview and pledged that he had the money to take Tesla private - a promise for which he was sued by the Securities and Exchange Commission, and which he recently settled.

Tesla is promising deliveries in four to eight weeks.

Tesla CEO Elon Musk has, at least a couple of times, suggested that selling the Model 3 Standard Range at its originally announced $35k wouldn't be profitable.

Musk tweeted that Tesla removed the option because "it was causing too much confusion". The all-wheel drive powertrain returned to its previous value of $5,000 which brings the long-range Model 3 to $54,000.

Like this: