"Costs $35k after federal & state tax rebates in California, but true cost of ownership is closer to $31k after gas savings", tweeted Musk.
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.
The Model 3 was intended as a way to bring the luxury electric vehicle to the average consumer.
In a surprise announcement, Elon Musk launched a mid-range model of Tesla 3 with a range of 260 miles.
Tesla's Model 3 is the company's first lower-cost, high-volume vehicle.
According to Musk's reply tweet, the option is still available for Tesla customers who'd like it, but the company won't be advertising it as it "was causing too much confusion". The company's website, however, has the new Model 3 starting at $45,000 - advertised as costing $30,700 after estimated savings - with $45k being confirmed as the sticker price.More news: Virat Kohli, Rohit Sharma bat like they are playing PS4: Yuzvendra Chahal
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However, there's just one catch, the vehicle isn't going to cost exactly $35,000 for customers, it will cost $45,000.
That will require you ordering it early enough to have it delivered before the end of the year, as that is when Teslas are no longer applicable for the $7,500 federal EV tax credit. The Long-range version will now only be available in a dual motor configuration while the mid-range version effectively replaces the single motor long-range version at a lower price point.
Until recently, the order pages for the Model 3, S and X also listed an option for full self-driving capability, allowing buyers to pay up front for features that may still take years to develop.
It makes sense that Tesla is rolling out a cheaper version of the Model 3.
The current Tesla vehicle line (Roadster, Model S, Model X) ranges in price from $68,000 - $138,800 before tax incentives for electric cars.
It is not clear how numerous more than 400,000 reservations for the Model 3 are for the base models.