Tesla’s New ‘Mid-range’ Model 3 Is Its Cheapest Car Yet

Tesla’s New ‘Mid-range’ Model 3 Is Its Cheapest Car Yet

Tesla Inc.'s long-promised $35,000 version of the Model 3 sedan is still nowhere to be found, but it's inching closer to that price point. A dual motor, all-wheel drive version with a long-range battery (310 miles) starts at $54,000.

Instead, this new model, dubbed the Mid-Range version, sits between the entry-level (but still non-existent) Model 3 and the high-end Long-Range version.

Tesla quietly killed off its full self-driving feature as an add-on option on its website for new buyers on Thursday.

The owner of the auto is unknown - but they just might be the most practical person in Zimbabwe - certainly more practical than property tycoon Frank Buyanga, who recently imported a $2 million Bugatti Veyron. (Destination charges add $1,200.) The cost is $45,000 without incentives.

In a surprise announcement, Elon Musk launched a mid-range model of Tesla 3 with a range of 260 miles.

The mid-range model is advertised as starting at $31,000 after state and federal tax credits and gas savings, which is an interesting way to display pricing on an ordering site. A mid-range version of Model 3 for only $4,000 less can appeal to a wider audience while Tesla prepares to bring to market the cheapest version of the vehicle. With the shrinkage of the federal subsidy the next day, the Model 3's 2019 NY price tag rises to $39,250.

"As Model 3 production and sales continue to grow rapidly, we've achieved a steady volume in manufacturing capacity, allowing us to diversify our product offering to even more customers", Tesla revealed to CNBC in a statement.

Tesla CEO Elon Musk has, at least a couple of times, suggested that selling the Model 3 Standard Range at its originally announced $35k wouldn't be profitable.

While Tesla is advertising the Model 3's real cost at $33,200 after the $7,500 federal EV tax credit and an estimated $4,300 in gas savings, buyers should note that by 2019, they will no longer be eligible for the full $7,500 federal tax credit. And while that may not be a dealbreaker in itself, it's drifting farther away, once again, from the Model 3's original promise.

Related Articles