Earlier this year Elon Musk estimated that production of the $35,000 Tesla Model 3 would kick off by the end of the year, which was good news for those reservation holders that have been holding out for the cheaper Model 3. Now it’s being reported that production of the much anticipated $35,000 Model 3 isn’t going to start for at least another eight months.
Tesla has been working hard to ramp up production of the Model 3 to keep up with demand. Last month sales of the Tesla Model 3 were so good in the US that it ended up being the 5th best selling car. Once the $35,000 Model 3 comes online, sales of the Model 3 will definitely eat into sales of traditional cars, like the Toyota Camry and Honda Accord, which consistently sit at the top of the sales charts. The $35,000 Model 3 is comparable to the pricing of the best selling midsize sedans.
Tesla’s head of investor relations Martin Viecha recently announced the production updates for the base Model 3, which will be powered by a shorter-range battery that gives it a 220-mile range. With production slated to start in the next 8 months, we’re looking at production of the base Model 3 start around April 2019.
By the time that the federal tax credit for the Model 3 will be reduced from $7,500 to $3,750 for buyers that take delivery by June 30, 2019. For those buyers that get their Model 3 between July 1 to December 31, 2019 the federal tax credit will only be $1,875.