Tesla announces the Model 3, set to retail in 2017 for $35,000

Tesla
By Harish Jonnalagadda on 16 Jul 2014 06:51 am
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Tesla is going after BMW with its latest car announcement. Dubbed the Model 3, the electric car will be 20 percent smaller than the Model S and offer a range of 200 miles, with sales set to start from 2017.

The $35,000 price point makes the Model 3 much more accessible to the general public than the $80,000 Model S. Tesla Motors CEO Elon Musk said during an interview with Auto Express that the reason behind choosing the Model 3 name was to avoid limitation with Ford, which threatened to sue Tesla after it was revealed that the electric car manufacturer was considering naming its car the Model E.

A key in bringing the cost of the car down is more affordable batteries that will be built at Tesla's upcoming Gigafactory. There isn't any indication as to how the Model 3 will look, with the car manufacturer stating that the car will be officially unveiled sometime in 2016.

Excited about Tesla's upcoming Model 3? Will the low pricing convince you to go electric?

Source: Twitter (Tesla Motors)

Reader comments

Tesla announces the Model 3, set to retail in 2017 for $35,000

4 Comments

Nope. It's just not cost effective at this point. My most expensive car I've ever purchased was $16k brand new after taxes and fees. Since then I have found such great deals on used cars that I just can't stomach the idea of paying full retail.

I would have to drive the car for at least 20 years before it broke even with fuel costs for a cheaper gas powered vehicle. I'm sure that Tesla's will maintain a high resale value and gas prices will go up, but for a frugal person who wouldn't normally purchase a new car, it will never make sense.

If I were the type that thought it was worth spending 30k on any new car, then I would probably buy the Model 3, but then if that was the case, I'd probably have already leveraged my assets and purchased a Model S because I think Tesla is a doing great things and the Model S is a terrific car.

If I was interested in buying something new in a bid to lower my carbon footprint and decrease my monthly gas costs, it would be the Elio. As it stands, even at a bargain price, I cannot justify driving that small of a car when I need to be able to transport my kids in a pinch.

At $35k the Tesla Model III should be a complete no-brainer for many people who would otherwise consider a car anywhere in the $30k+ price range. If you do enough mileage, this car should be not only fun to drive, but a very good ROI compared to a BMW 3-series, or equivalent Audi / Mercedes.

I've been a shareholder in Tesla for just over a year, and I've been driving a Model S for one month as of today. I'm convinced this is a very real trend.

mammlouk commented above that his most expensive car was a $16k vehicle. Ok, probably not the target market (at least not yet). The Model III goes after the entery level luxury buyers. But just for kicks, consider the savings for someone driving the average 12k miles per year. $35k for the car. Subtract $500 per year in average maintenance savings and $1500 in average fuel savings. Keep in mind it would be much more in Canada (where I live) or in Europe (where gas is insanely more expensive). That's still $2k per year. Figure an 8 year life. You'll pocket $16k of savings so the $35k car really cost you about $19k compared to an equivalent gas car.

Oh, and you have a car that is quiet, fast as hell off the blocks, totally Internet connected, beautiful, and comes with a full charge every morning, and access to Tesla's supercharger network for road trips. Sweet. Not for everyone, but I expect them to sell out of everything they can manufacture.

Truthfully, I've been watching Tesla very closely, waiting to purchase one of their vehicles, so seeing this information is very encouraging!  I'm glad to see this iteration will be a bit more friendly to my wallet!