Tesla Motors Inc has hyped its much-awaited all-electric Model 3, but there is doubt emerging over the price of the car claimed to be around $35,000. The firm launched the prototype more than a year ago, and stated that the entry price would be around $35,000. Range of the car is said to be around 215 miles.
Tesla Model 3 price could double
Already 400,000 buyers have made a down payment of $1,000 to reserve the Model 3. The Palo Alto-based firm, however, stated that the first car would be rolled out somewhere around the end of this year. Tesla has not yet released the price for different variations of the Model 3, and therefore, it is expected that small changes in the car can easily increase the price or may be even double it, notes hybridcars.
Shots of Jameson – a YouTuber and a Tesla fan – conducted analysis comparing the Model 3 and the Model S. If the same premium features (as in the current Model S) are added, then price of the Model 3 will increase well over $75,000, as per ‘Shots of Jameson.’ The one with all the features could cost somewhere above $100,000, as per Shots of Jameson.
However, a more conservative approach by him puts the price at somewhere around $75,000. Tesla Motors Inc buyers are used to paying a little more than what the initial price is. For instance, they paid a tad above the base price of $68,000 for the Model S, notes hybridcars.
What could increase the cost?
As per Shots of Jameson, the Model 3 owner will also not have any issues when it comes to paying a little over the said price for the performance and features. If the buyers go for the premium interior features, glass roof, larger battery, dual motors, premium sound, and autopilot and so on, the price of the Model 3 may go up to $75,000 or more.
‘Shots of Jameson’ also estimated how the battery cost will contribute to the price. He stated that the base model could be fitted with 55kWh, and the owner will have to pay extra $4875 to have 70 kWh batteries. Price will increase by another $4,875 for 90-to-100 kWh battery option as per the video presentation. Those who do not want to pay more must keep their add-ons limited.
Subsidies may disappear too
The expectations are that Tesla could soon surpass 200,000 units limit allowed by the federal government for the $7500 tax credit that also applies to its other models. It is expected that the tax credit will be phased out, and will completely disappear by the time Model 3 is in full production volume. Further raising the cost of the car. However, there will be state rebates and other incentives.
Consumers ready to pay a higher price for the Model 3 will get faster delivery of their cars compared to those who choose to stick with the $35,000 price. Tesla Motors Inc has already said that it will bring cars with the highest profit value first.