Elon Musk Says Tesla Model 3 Will Cost $35,000 Before Incentives

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hydrogen

Discussion Starter · Jan 14, 2015

Elon Musk Says Tesla Model 3 Will Cost $35,000 Before Incentives
Jalopnik.com
January 14, 2015
By Damon Lavrinc

Elon Musk Says Tesla Model 3 Will Cost $35,000 Before Incentives

The Chevrolet Bolt is being painted in the press as a Tesla competitor. It's not and Elon Musk agrees. And while GM says its 200-mile EV will be priced at $30,000, there's a big asterisk on that sticker – it includes incentives – incentives that Musk isn't including in the price of the Model 3.

Musk has said in the past that the Model 3 would cost $35,000, but tonight he clarified that figure doesn't include any state or federal tax incentives.

Just the Feds will give you $7,500 for going electric, which puts the real sticker price of the Bolt at $37,500. And if Tesla used the same math GM is promoting, that would mean the Model 3 would come in at $27,500 after current incentives.

Obviously, Tesla has a long way to get there. It still needs to deliver the already delayed (twice) Model X before getting really serious about the Model 3, and Musk shed some light on what he's trying to accomplish.

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Butz

· #2 · Jan 14, 2015

Interesting

posaune

· #3 · Jan 14, 2015

hydrogen said:
Obviously, Tesla has a long way to get there. It still needs to deliver the already delayed (twice) Model X before getting really serious about the Model 3, and Musk shed some light on what he's trying to accomplish.

The Model X which has sold out but is in continuous delay. How is Tesla making any profit and staying in business?

bballr4567

· #4 · Jan 14, 2015

posaune said:
The Model X which has sold out but is in continuous delay. How is Tesla making any profit and staying in business?

They arent. Musk has tons of money.

Zydzik

· #5 · Jan 14, 2015

And my Johnson is 1 ft long before incentives............... Pipe Dream (No pun intended)

Reactions: 1

sfbreh

· #6 · Jan 14, 2015

But the Bolt will be competitive with it. A real game changer.

mchicha

· #7 · Jan 14, 2015

GM's engineering muscle in play

MechEng

· #8 · Jan 14, 2015

The average transaction price of the Model S is nearly $100K and Tesla can't make money on it.

So even with all the manufacturing scale in the world how will they be able to make money on a $35K Model III? I'm thinking Musk must have a drug problem. Either that or the Model III is going to be a nasty cheap eco-box.

jzchev28

· #9 · Jan 14, 2015

Until these cars are available for purchase none of this means anything. If either of these cars are what is being promised then WHICHEVER one comes out 1st WILL be the game changer. It doesn't matter if the 2nd one to come out is competitive with the other. You can't dismiss the Bolt as a game changer just like you can't dismiss the Tesla. To do so is idiotic based on what someone is saying. Tesla could be bankrupt before the 3 comes out, or prospering. Time will be the judge, personally my money is on GM.

Reactions: 1

Envoy4Life

· #10 · Jan 14, 2015

Great.

Now, finish the planned Supercharger system additions in Michigan and I'll buy one.

Reactions: 1

mgescuro

· #11 · Jan 14, 2015

mchicha said:
GM's engineering muscle in play

GM's impotent marketing department in play.

Reactions: 1

sfdenny

· #12 · Jan 14, 2015

And why is the Bolt not a competitor? Because in the world of Musk, nothing can be?

mgescuro

· #13 · Jan 14, 2015

MechEng said:
The average transaction price of the Model S is nearly $100K and Tesla can't make money on it.

So even with all the manufacturing scale in the world how will they be able to make money on a $35K Model III? I'm thinking Musk must have a drug problem. Either that or the Model III is going to be a nasty cheap eco-box.

Probably make it up in volume and decreased costs on the battery coming from Gigafactory. -- i.e. hold the ,one on price and drop the cost of the battery, which is significant.

Look. Here's the thing about Model 3. So what if it does start at $35,000? It's probably the one with a smaller batter that goes 150 miles. Then there's the next level up with the 200 mile range. That's probably $45,000. Then there's the 85KWh version at $55,000 and 300 mile range. Then there's the 85KWh D version at $65,000 with AWD and 0-60 in 3.0 sec, blah blah blah.

So yes, it may start at $35,000, but the options will really push it upwards.

mgescuro

· #14 · Jan 14, 2015

sfdenny said:
And why is the Bolt not a competitor? Because in the world of Musk, nothing can be?

Because Bolt is a Spark on steroids. Model 3 is probably a smaller Model S that will eat M3's for lunch.

Reactions: 1

sfbreh

· #15 · Jan 15, 2015

mchicha said:
GM's engineering muscle in play

Sorry, where?

Envoy4Life said:
Great.

Now, finish the planned Supercharger system additions in Michigan and I'll buy one.

Even though the M235i xDrive is apparently a shoe-in for your next car?

mgescuro said:
Because Bolt is a Spark on steroids. Model 3 is probably a smaller Model S that will eat M3's for lunch.

Sonic on steroids for $37,500. I've already tried explaining what a Model 3 will be.

Reactions: 1

paul8488

· #16 · Jan 15, 2015

I hate the term 'game-changer'. When is the last time there was a true game changer? I can't think of a single vehicle or technology or company in recent memory that forced everyone to do business differently. Even Toyota with their hybrid success didn't fundamentally change the industry.

I'm excited about the Model 3, and also about the Bolt, but for different reasons, and don't see either being a massively significant vehicle, even if I suspect both will find their place in the market.

All Star

· #17 · Jan 15, 2015

MechEng said:
The average transaction price of the Model S is nearly $100K and Tesla can't make money on it.

Source please.

Envoy4Life

· #18 · Jan 15, 2015

sfbreh said:
Even though the M235i xDrive is apparently a shoe-in for your next car?

Even with me being a "overly narcissistic sociopath who displays borderline antisocial tendencies" (your words), you certainly seem to be up my ass here on GMI.

Just an observation.

_____________

And yes, the M235i is likely a shoe-in. Model 3 isn't going to be ready by the time my ATS is due back (~21 months). Model X will be lucky to be out by then.

MechEng

· #19 · Jan 15, 2015 (Edited)

All Star said:
Source please.

http://nbr.com/2014/12/08/americans-on-verge-of-buying-1m-expensive-cars/

It's common sense really. The Model S 85 is the more common model and most are not base cars ($81K base price). Most are sold with lots of options. With the D model (85D base is $86K). Add in the premium trim package and air suspension and your at $99K. I would figure that number is only growing. But minus the green credits Tesla has never been cash flow positive.

sfbreh

· #20 · Jan 15, 2015

Envoy4Life said:
Even with me being a "overly narcissistic sociopath who displays borderline antisocial tendencies" (your words), you certainly seem to be up my ass here on GMI.

Just an observation.

Perhaps you'll acknowledge those words and change your ways, because you're fundamentally reasonably smart and decent person.

Envoy4Life said:
And yes, the M235i is likely a shoe-in. Model 3 isn't going to be ready by the time my ATS is due back (~21 months). Model X will be lucky to be out by then.

I thought Model III was a 2017?

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