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Home / Business / Tesla promises to continue to sell the Model 3 with $ 35,000, although few will order it

Tesla promises to continue to sell the Model 3 with $ 35,000, although few will order it



Two weeks ago, Tesla removed the $ 35,000 model 3 from its website, making it an off-menu object. When asked, they could not answer how long the model would be available. Many, including Electrek, believe that this was an attempt to "kill" the car.

It looks like death is not breaking out Like today's Tesla earnings in the first quarter, CEO Elon Musk promised that the 35k Model 3 "will be there forever and will stay there" for an indefinite period of time is offered for sale.

The release of the $ 35,000 Model 3 was a major accomplishment culminating in Tesla's original "Secret Master Plan" of 2006.

However, there have been several developments since this announcement. Many early customers canceled their delivery dates with no set timetable for when Tesla wanted to prevail, and some canceled their order and bought another vehicle instead. After Tesla was weird about it for a while, the car was dropped off on the site, but it was stated that the sale would continue by phone or in person. The first $ 35,000 deliveries for Model 3 started last week.

On today's call, Musk mentioned that customers do not have to go through an "obstacle course" to order the Model 3 Standard Range, all they need is a store call or a call. Despite this small additional purchase obstacle, Musk's orders for the Standard Range 3 model were pretty low.

Instead of the $ 35,000 Standard Range Model 3, Tesla's website is launching the $ 39.5 billion "Standard Range Plus" base model, which has an autopilot and about 1

0% more range than the $ 35k standard range car. The $ 35,000 car also has no access to various functions in the car, such as music streaming, navigation with live traffic visualization and heated seats. These are all software-limited features, and customers can always upgrade when they pay the difference.

On the call, Musk said these features hit the "sweet spot" of value to customers. And that the Standard Range Plus offers a good price-performance ratio compared to the $ 35,000 standard car. Customers seem to agree as the order value for the $ 35,000 car is low.

Tesla mentioned in today's winning letter as well as the Tesla Autonomy Day earlier this week that a Model 3 Robotaxi is equipped with full self-propelled hardware and a battery pack with a lifetime of one million miles would produce "$ 38,000" is significantly higher than the cost of a Standard Range Model 3.

Electrek's Take

First of all, a bit tired Culpa us. We said Tesla "killed" Model 3, and maybe we overdo it. This was not just the opinion of one of us, but all of Electrek employees contributed to the editorial part of this post, and we agreed that this move looked like a clear attempt to kill the car, hence our headline.

In the article "Take" we mentioned that the car was not completely "dead". However, since Tesla would remove the model from the site and never produce the basic model package or the interior model, it would seem that all of them killed the intention of taking the car seriously.

We also asked Tesla to comment on how long model 3 "off menu" would remain available and they declined to comment. We have not heard anything on this front until today when Musk said it will "stay for sale".

As mentioned earlier, Tesla has taken similar steps in the past with other models, notably the 40 kWh model S. Tesla The same justification for killing this model and saying that consumer demand is not high enough. After a long time, Tesla tried much more to sell higher models than the 40 kWh, and to persuade the reservation owners to instead buy 60 kWh to get the car earlier, etc.

So Tesla: If you really sell this Car, why it gets harder, why pick up the list and tell people that nobody wants it? It sounds very much like the justification you used to kill the 40 kWh Model S, and we hope you will not use it as a last resort to kill this model. We would like to be wrong.

The fact remains that, although a call or shop visit represents a low barrier to entry, is a entry barrier. A barrier that means that the consumer is not informed about the availability of the model (as it is not listed), and that a customer must talk to a seller, which is a good reason why all of these are amazing , Features are worth about 12% extra.

And it's true, the Standard Range Plus seems to be a significant asset. When it was first announced, many people who stood up for the $ 35,000 base car jumped to a standard range, thinking the uprising was worth it. Especially since the comparison at that time dealt with the later standard interior, which Tesla has not (and still is not) made and the Tesla artificial leather interior did not offer.

If Tesla can not sell the $ 35k Model 3 still profitable, then they have the right not to try and sell it very hard. But why should you introduce it then? Why not just wait until you can cut costs? And what does all this look like for the later release of an even cheaper car, something that Tesla wants in the future?

If this is just a sincere attempt to keep their promises, but to steer customers in any way possible to buy higher vehicles, then that's no big deal. Companies want to sell more expensive products, we can accept that as a reasonable offer.

We believe that Tesla could have been less strange during this rollout – and rollback. Regardless, the standard range car is still available though perhaps on life support.

We will certainly report on further developments.


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