Tesla’s $35,000 Model 3 Could Now Cost $78,000

Elon Musk’s Model 3, once touted as Tesla’s $35,000 car for the masses, can now set a buyer back almost $80,000 putting the electric sedan beyond reach of many consumers and by Musk's own estimations, brings it closer to the realm of luxury cars. Latest configuration will offer two motors, all-wheel drive. Analysts think that the original idea for this car to be for everyone is kind of laughable. 

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Silicon Valley obviously has a very different definition of “the masses” than Detroit does.

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(edited)


Tesla is not really building cars for the masses, as originally planned. It can't afford to as it burns through cash. And buyers who have already give a $1,000 deposit and still waiting for the $35,000 can wait forever.

Edited by Adam Varga
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This choice makes it very clear Tesla cannot build a profitable $35k EV. Which means it is very likely Tesla has no competitive advantage or lead over any of the majors who are now moving into the EV space in a big way. Which means Tesla may be good as a niche player, but there is little chance it can succeed in justifying a $60B market cap.

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They have limited production capacity. They’ll sell the most expensive Model 3’s possible at first. They have the highest margins, which the company needs. There is no data the suggests that they can’t make a $35k version. They’ll make it once they need it to keep the production line full.

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As far as I understood, the $78,000 Model 3 is a version of the original one, which is (supposed to be) the cheap one. Can't they co-exist?

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15 hours ago, Marina Schwarz said:

As far as I understood, the $78,000 Model 3 is a version of the original one, which is (supposed to be) the cheap one. Can't they co-exist?


Elon Musk announces that Tesla would lose money and die if it started by shipping the lower-priced Model 3 that starts at $35,000. Same model but different profitability. I guess the answer is no. 

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Aren't they shipping it already? All I saw was a string of tweets about all-wheel-drives and dual motors for the $78,000 version.

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