Tesla Motors Inc (NASDAQ:TSLA) intends to launch production of its Model 3 all-electric car next month and have it on sale by mid-2017. The company said that the starting price will be $35,000. However, tax incentives in certain states could make the cost much lower. At the price of $35,000 Tesla is competitive with the new all-electric 2017 Chevy unveiled last month and set to debut late this year for $37,500.
What buyers will pay is based on whether their tax situation is eligible for federal credit and the place of residence for state subsidies. In Colorado a Model 3 could be purchased for as little as $21,500.
The Model 3 would come at a price of $22,100 after tax incentives in Louisiana. Generally, the majority of buyers will only get a $2,500 income tax credit from their home state after the $7,500 federal income tax credit.
The Model 3 is supposed to have a range of around 200 miles on a single charge and is not as big as the Model S. Tesla is anticipated to display the Model 3 in March, and sales should begin in 2017. However, it is not known if the organization will display the actual automobile or only display images.
Tesla CEO, Elon Musk has commented that he is happy with the way the Model 3 is progressing so far. However, he stressed that the Model 3 will not have the same number of features that the Model X has. At a recent event, Musk said that the Model 3 provides greater volume at a lesser cost. Tesla’s aim is to have an economical, mass market electric car and he feels happy regarding that goal.
Musk has reiterated in the past that this will be Tesla’s automobile for the masses. Even at the price of $35,000 prior to incentives, the Model 3 costs much less than the Model S that is priced between $76,000 and $82,000.
Khobi Brooklyn, a Tesla spokeswoman, said the Tesla Model 3 is on schedule, and everyone will know more about it by the end of March. That’s when Tesla is committed to releasing more details and give a fuller picture.