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Armen Hareyan's picture

If Tesla Does These Things It Can Probably Lower The Price of Model 3

Many people start realizing that the 35,000 Model 3 was just a good promo from Tesla. We haven't seen the Model 3 at that price point and people are wondering if this was somewhat misleading. But let's be proactive. What can Tesla do to offer a Model 3 at 35,000 dollar price point?
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Tesla needs to show what the non-premium interior of the Model 3 will look like before we have hopes of seeing Model 3's 35,000 dollar version. Torque News thinks there is no question that Tesla can build nice cars, what matters can it build nice cars like Model 3 at $35,000 dollar price point?

So what should we look for? Tesla needs to tells us whether the 35K Model 3 will have cloth seats or leather seats. seats with electrics or without electrics. Will the interior have the same screen or an AM/FM radio with toggle switches?

Once we hear the answers of these questions, we will know that the Model 3 Tesla at 35K price point is near.

"The $35,000 price was misleading, unfortunately, but that seems to be the way cars are pitched," wrote one Tesla enthusiast named David, in Tesla Model 3 Owners Worldwide group on Facebook. "You cannot get any vehicle out of the door for the sticker price. They have to make profit for a few quarters before making a car with fewer features, the cheaper one will come," he added. No wonder 24% of Tesla Model 3 orders have been canceled.

I would expect the 35K Tesla Model 3 will have cloth seats. Although, usually seats are extra. Everyone knows that.

It will not have wood vent (plastic). It will have less speakers and metal roof above the driver. The 35,000 dollar Model will probably keep the same UI.

What else can Tesla do to lower the price of the Model 3. There is nothing wrong with roll-up windows. That would lower the price. The company can also produce some cars in Mexico. I know this would be painful to take some many jobs to Mexico, unless they find a way to be more cost-effective in the United States.


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Comments

"You cannot get any vehicle out of the door for the sticker price." What has this guy been drinking.I have NEVER paid sticker price. Tesla factory assembles the cars using mostly robots and contracts out most of the parts, so exactly how can "going to Mexico" save any money? Their workers are non-union. IN the near future Tesla buyers will lose their $7500 tax credit, while almost all of the 120 plus competitor vehiles still have theirs. Lets see Tesla sell a Model 3 to a normal non Tesla cult member at a $7500 price disadvantage.
You can haggle on price, and look for sales and discounts, but especially with European cars the options list is long, and options prices are steep. To add a lot of the technology and safety content that comes with every Tesla you can easily add $5K-10K to the sticker on an import model. The key to having a lower entry price on a car is offering a bare bones model. So yeah, cloth seats and fewer options included in the car. BMW's entry 3 Series car is the 320i. It starts at $35K for a basic model, but if you are going to get close to the economy and performance of the lowest priced current Model 3, a better match is the 330e iPerformance plug-in hybrid, and when you match the included tech, and premium interior of the currently available $49K Model 3, the 330e Executive Tier starts around $53K before other options. A loaded M3, which offers better handling, but worse acceleration or economy starts pushing $80K, compared to a dual motor, performance optioned Model 3 for around $70K. Tesla's $7,500 is not going away in 2018, in Q1/Q2 2019 it gets cut in half, and Q3/Q4 it gets cut in half again. But state rebates are still in force in many states. We get an additional $2,500 back in CA. So if you bought a Model 3 here in 2018 and qualified for the full rebates the entry price would be around $40K. I got an email today from Tesla saying that the Model 3 is available to order today, with a projected delivery of 1-3 months. So personally if I were in the market to order a model 3, I'd get one today with the longer range battery and premium interior, and the available 2018 rebates for $40K, as opposed to waiting in line a year behind all of the pre-orders to get a standard Model 3 without the rebates and with a bare bones build for $35K.