Tesla’s Model 3 reportedly to be shown next month and on sale by mid-2017 could sell for a starting price as high as $35,000 and as low as $21,500 with the country’s best state incentives and federal tax credit rolled in.
The specific answer will depend on whether one’s tax situation enables federal credit eligibility, place of residence regarding potential state perks, and the extreme “$21,500” example would be only for Coloradans.
In its home state and biggest domestic market, California, a $2,500 state subsidy plus the $7,500 federal credit led Bloomberg to shout in a headline “Electric Fantasy: Will the Next Tesla Sell for $25,000?”
It will under a few assumptions. One assumption is Tesla does not run out of federal tax credit eligibility before the Model 3 is for sale, or very many are sold, which is possible by 2018 unless an extension is granted.
Another assumption is the $35,000 does not include a $1,200 delivery fee which Tesla charges for its X and S but conspicuously omitted mention of when it gave quotes to Bloomberg.
“We can confirm it’s $35,000 before incentives,” a Tesla spokeswoman, Khobi Brooklyn, told Bloomberg. “We haven’t changed our minds.”
As Brooklyn’s statement indicates, the price is not really news, and echoes a statement Tesla chief Elon Musk made a year ago.
“When I say $35,000, I’m talking about without any credits,” he said.
A list of incentives and credits may be found on Tesla’s website.
Don’t bother looking for pictures of the car though, because those are due next month, as Musk has also said.
Questions thus remain, including how many options and how far above the base price Model 3 will go – and what one will get for the base price.
Tesla has said this car is for “the masses” and while really baseline income folks do not normally purchase $35,000 cars, even subsidized ones, this is much more affordable than $76,000-82,000-plus Teslas now available.
The U.S. average new car price including ones that sell down near $10,000 up to many multiples of that into the six figures is $31,000. And, by 2017 the average new car may be closer to $35,000.
Tesla’s 3 model with subsidies is below the bar – potentially well below – and Brooklyn said we will know much more soon.
“The Model 3 is on time, and everyone is going to learn more about it at the end of March,” she said. “That’s when we’ve committed to talking about it and giving a really great update, and that’s what we’re going to do.”