Three model years and nearly three calendar years after Elon Musk and Tesla promised the world the Tesla Model 3 would "start at $35K," the promise is fulfilled. Tesla announced today that without considering the mandatory $1,200 delivery fee, and when in black with zero options, no autopilot, and no included supercharging, the Model 3 now has a Standard trim with a price of $35K.
The announcement came after Elon Musk and Tesla had tweeted teasers about a major announcement. The major announcement today is that Tesla has done what it promised three years ago.
The Model 3 still qualifies for a federal tax credit of $3,750 and many EV-targeted states offer additional rebates with some having restrictions on income and other factors. Tesla posted the above image for its shoppers and shows the incentives in my zip code plus an imaginary gasoline savings figure. The Model 3 does not have any meaningful gas savings compared to other EVs or popular green cars like the Prius, which Tesla says is one of the top trade-n cars for the Model 3.
We priced out a red Standard Model 3 with sport wheels and both Autopilot and Full Self-Driving capability (coming later this year) and the price with Delivery included was $48,200. Tesla seems to leave Delivery off its website price calculator.
The new lower price could be a game changer for Tesla. It will be very interesting to see when Tesla will begin delivering these cars to U.S. shoppers and how many the company will build.