Tesla Launches Base Model 3 For $35,000 With Shorter Range, New Interior (electrek.co)

In a call with reporters Thursday, Tesla CEO Elon Musk said the company is finally launching the long-promised standard Model 3 with a base price of $35,000. "The automaker is now making several new versions of the Model 3 available with a shorter range and new interior options," reports Electrek. From the report: Today, Tesla sent an email to its retail stores the details of the announcement of the new options being available to order in the U.S. today and available as soon as next month. All the details are expected to become available in the next hour, but here's what we know so far: Customers are now able to order the $35,000 Model 3 with a standard interior and standard battery pack enabling 130mph top speed and 5.6s 0-60s acceleration. Tesla is also making a new "Partial Premium Interior" with better seats than the standard interior available with a different "standard range plus" battery pack for a $2,000 premium. The Model 3 Standard Range Plus results in 240 miles of range, a top speed of 140mph, 0-60mph acceleration of just 5.3 seconds. Tesla says that deliveries are starting within the next 2 to 4 weeks depending on the configuration in the U.S. In Europe, Musk said it will be available to order within the "next 3 to 6 months." Slashdot reader Rei provides additional details: The new unveiling introduced a whole slew of variants, including (price, range, top speed, 0-60, premium):

SR: $35K, 220 miles, 130mph, 5.6 seconds, non-PUP
SR+: $37K, 240 miles, 140mph, 5.3 seconds, partial-PUP
MR: $40K, 264 miles, 140mph, 5.2 seconds, PUP
LR: $43K, 325 miles, 140mph, 5.0 seconds, PUP
AWD: $47K, 310 miles, 145mph, 4.5 seconds, PUP
P: $48K, 310 miles, 162mph, 3.2 seconds, PUP

Pricing, ranges, and features have by and large significantly surpassed initial promises. For example, the Long Range (LR) variant was supposed to be a $9K premium over SR, with the Premium Upgrades Package another $5k, but now PUP is included in LR and the price difference is only $8K. Range and performance specs have been upgraded not just on new vehicles, but will also be upgraded on existing vehicles, where applicable, via software update. The price for Autopilot has dropped from $5K to $3K, and some features once planned to be premium-only -- including the glass roof and auto dimming, power folding, heated side mirrors -- are now standard. The Model S and X product line has also been modified, with higher performance at the top end and lower prices at the bottom.

To achieve cost savings, in addition to production optimizations and the recent layoffs, Tesla announced an unexpected strategy: they're closing most of their stores. Sales will only be conducted online. Instead of test drives, cars can be returned within 7 days or 1,000 miles at no charge. "Quite literally, you could buy a Tesla, drive several hundred miles for a weekend road trip with friends and then return it for free," Tesla said in their blog post.

Comments

Closing stores?

[Camembert]

This doesnâ(TM)t look like a good idea to me. A car is something that most consumers want to sit in and explore in the showroom. It is not like a book you order online.

Well of course it's no charge

[SuperKendall]

Instead of test drives, cars can be returned within 7 days or 1,000 miles at no charge

After a thousand miles driving, I'd say it's pretty obvious there's going to be no charge.

Re:Closing their stores?

[omnichad]

cars are something people want a shopping experience with

No. That is literally the worst part of car ownership.

Re:What?

[anegg]

The article touches on servicing, too:

At the same time, we will be increasing our investment in the Tesla service system, with the goal of same-day, if not same-hour service, and with most service done by us coming to you, rather than you coming to us. Moreover, we guarantee service availability anywhere in any country in which we operate./quote?

Hyundai Kona Electric

[ghoul]

The Hyundai Kona Electric is now available to order with deliveries on Mar 15. Its 37000 or 27000 after tax breaks in California. 260 Mi range and an SUV rather than a Sedan.
The only problem is its so much in demand even though the MSRP is 37000 dealers are charging 41000 as its a better car than the 42000$ Model 3.
Now that the 35000$ Tesla has got released maybe the price premium on the Kona Electric will go down
Thanks Elon. I was in 2 minds about the Kona Electric purchase. Your timely move will let me get it for $27K. (Note its still cheaper than the base model Model 3 as Hyundai gets the entire 10K tax break)

Re:Hyundai Kona Electric

[Rei]

LOL. Are people still pretending that the Kona is an "SUV"? Have you sat in the back seat? It's only suitable for amputees. It's a "CUV", which only describes form factor, not size.

The problem is not demand but production. They're making them in tiny quantities, because Hyundai earns basically nothing on its EVs.

Re:Hyundai Kona Electric

[drinkypoo]

Tesla unfortunately for them has to make money on each car but thats not my problem.

Munro & Assoc. claims that Tesla will make a profit even at $35k. They didn't start sooner because they had many customers at a higher price point, and more profit is better... plus they did need the money

Re:Hyundai Kona Electric

[drinkypoo]

Which was proven false. Tesla loses money on every car it has ever built.

Sure, after R&D and Capex, but what the rest of the class is talking about is whether the vehicle is profitable to make if you're accounting for current expenses, like materials, labor, power, and the like. Try to keep up. As long as they're making a day-to-day profit selling vehicles, which they are doing, they're making up their deficit.

Tesla has never made a profit in its entire existence

Sure.

and never will.

Possible.

They are gonna be out of business very soon now.

Trolls like you have been saying that for years now.

You get a 7-day, 1,000-mile evaluation instead!

[Morgaine]

A car is something that most consumers want to sit in and explore in the showroom.

Apparently Tesla is giving potential customers 7 days of full possession and 1,000 miles of test drive instead, if I understood it correctly.

That seems enormously superior to sniffing around in a showroom for an hour, to me at least.

Re:You get a 7-day, 1,000-mile evaluation instead!

[Miamicanes]

If Tesla were smart, they'd cut a deal with someone like Hertz or Avis, so that if you wanted to test-drive a Tesla, you could go rent one for a week (at some non-free price that would be considered a fair price if you were just renting it to drive for a week while traveling), then apply the price of up to 4 rental weeks from the past year to the purchase price of a Tesla if you decided to buy one.

IMHO, that would kill two birds with one stone... it would avoid the problems of dealing with returned cars from people who changed their minds (since the same cars would be rented over and over), while simultaneously drawing in potential buyers who might decide to rent a Tesla for a week while on vacation & decide that they absolutely LOVED it. It also minimizes the impact of regional availability... a family from a small town in North Dakota or Montana could rent a Tesla while vacationing in Orlando, Miami, or Las Vegas for a week just as easily as a family from Seattle or Atlanta. It also minimizes the risk to the people trying one out... if even a "normal" rental car in Miami is going to cost $200 for the week, and you can get a Tesla for $50-100 more, lots of people who might not have gone out of their way just to rent a Tesla in their hometown might say "fuck it, I'm on vacation, gimme the Tesla!"

Honestly, I think their BIGGEST problem would be supplying with the rental car company with enough cars to satisfy the demand. They probably WOULD have to start off for the first year or two by limiting it to just a couple of very popular vacation markets... say...

year 1: Orlando and Las Vegas

year 2: Miami, Washington DC, Los Angeles, Chicago

year 3: every remaining international airport in Florida, plus every city that currently HAS a Tesla showroom. I'd expect that over time, places like South Florida would probably have Tesla-equipped Avis/Hertz locations at BOTH the airport AND some off-airport suburban locations that seriously blurred the line between "rental car office" and "de-facto Tesla showroom".

Their biggest problem would be convincing Hertz or Avis to keep the cars in circulation for 2-3 years instead of replacing them all annually (since otherwise, Tesla would be struggling just to keep the rental car company fully supplied, let alone anyone else).

Re:You get a 7-day, 1,000-mile evaluation instead!

[R3d M3rcury]

Except that you actually have to pay for it.

I mean, before I plunk down $35,000 for a car, I’d like to try it out first. Maybe take it for a test drive or something. And I don’t even want to think of the issues of financing that purchase and then deciding I don’t want the car...

How is it "better"?

[SuperKendall]

260 Mi range and an SUV rather than a Sedan.

Does it have AWD, or even an option? Doesn't seem ike it from the specs.

Any quick charge ability? Again reading through the product page, seems like an overnight charge,

6.2 inches of ground clearance - Just 0.3 inches more than a MINI countrman, 0.7 more than a model 3 so claiming it is "an SUV" is kind of misleading.

60 mph in 6.4 seconds.

Not sure in what way this car is actually better, except maybe a bit more interior cargo space. By any other metric it is not as good or useful.

As someone else said in another comment, without some approach to long range quick charging it's not a viable option for a lot of people (though I guess you could buy a Kona Electric for everyday use, then a Tesla for roadtrips and return it).

Re:How is it "better"?

[SuperKendall]

It has heated and cooled seats

So does the Model 3.

I drove a friends Model 3 and it is very disconcerting to have to look to your right

I drive a MINI with the speedometer in the middle of the dash, that is not a problem at all after a day or two.

It has 260 miles and access to CCS and ChargeAmerica

That range is OK although personally for a long road trip I think 300 would be a minimum, especially as you drain the car for various uses (like seat heaters).

I'm glad they have something but it still seems like Tesla has a much more expansive quick-charging network.

Rear visibility. The Model 3 is really difficult to get a clear rear view

I'll believe that when I see it as ALL new cars have incredibly poor rear visibility now, sloping roof or not.

In fact I do not believe it at all when I look at the rear shots of the Kona Electric (about fourth image from top), that is a tinier rear area to see through even than the Model 3 (especially with the roof being glass)! It is the typical no-visibility rear view window you find on every crossover SUV today.

And if you are doing a long 400 mile drive would you rather do it in a cramped sedan or a SUV with more legspace.

The Model 3 has a lot of leg space (my friend has one), these small crossover SUV's can often be worse depending on how they have allocated the cargo area.
I can tell you for sure I'd rather be in a Model 3 than a Rav4 for example....

Re: Closing their stores?

[c6gunner]

The one part that I think doesn't signal they are doing well is the closing of the stores.

Tesla never wanted stores in the first place. Part of their business model right from the start was a desire to upend the existing "dealership" model. They were forced to open stores because the laws in some (many?) states prohibited manufacturers from selling direct to consumers.

Re:Closing their stores?

[Anonymous Coward]

The trouble is that when you actually want to buy the car, you're at some point going to get shuffled into a room with the slimy 'finance' guy who'll waste an hour of your time trying to swindle and guilt you into paying for crap you don't want (and in most cases, you'll deal with other annoying "oh, you can't get that price.. Oh, ok.. let me go check with my manager" [wait 20 mins] on repeat before you get there). The dealerships I bought from are dead to me. In their world, this stuff still happens. I moved on a long time ago and I see exactly what they are.

Re:What?

[beanpoppa]

I made a reservation to have my 3 serviced online. The first available appointment was 2 weeks out. I made my appointment (it wasn't an emergency). The next day, I received a call from the service center that they could have the mobile tech come to me, or I could bring it in later that day or the next.

Re:Closing their stores?

[hackertourist]

Haggling with the salesman is the worst part of car ownership. Test drives are (for me) an absolute requirement. I will not spend thousands on something I can't thoroughly evaluate beforehand.

Re:Closing their stores?

[omnichad]

You can be successful at it and still hate every minute of it.