Price drops, stores close, and oh yes, $ 35,000 model 3 has arrived
It has been a busy day to digest all the moves Tesla made on Thursday when they also announced the arrival of the long-awaited $ 35,000 model 3. I the last part of "Plugged In", Alex from E For Electric and I discuss the busy day Tesla had yesterday and try to make sense of it all.
The obvious headline is that Telsa has finally delivered a $ 35,000 version of Model 3 sedan. It's really not denied that this is good news for the company, as well as for the thousands of loyalists who have endured the promised $ 35,000 model 3.
Surprisingly, Tesla did much more than offering a lower price Model 3 ; They slashed the price of the S&X models, respectively, $ 1
Model range Top speed 0-60 Price
Standard range: 220 130 mph 5.6 Sec $ 35,000
Standard range: 240 140 mph 5.3 Sec $ 37,000
Mid Range: 264 140 mph 5.2 Sec $ 40,000
Slow: 325 140 mph 5.0 Sec $ 43,000
AWD Long Range: 310 145 mph 4.5 Sec $ 47,000
AWD Performance: 310 162 mph 3.2 Sec $ 58,000
* Prices exclude Tesla's $ 1,200 destination and documentation fee
. Any other company would have had enough news for a day with the price slips across the board, but not Tesla. They also announced that they would close almost all of their stores and switch to online sales, with the exception of only a few stores being converted to "galleries". It came as a surprise to me, since I just received an email from Tesla two days earlier and asked for support in their attempt to increase the amount of Telsa stores in my home state of New Jersey.
Tesla currently has four seats in New Jersey, and that's all they are allowed to operate. The e-mail stated that they are seeking support for a new bill that will allow Tesla to open ten more stores in the state. I received the message below in an email on February 26, just two days before the announcement that they closed all their stores:
It is unclear why they sent this action just to announce all store premises two days later. Did they have a sudden change in direction, or is this part of an unannounced plan? Anyway, it's strange at least, and pretty confusing.
Tesla also moved three functions from the Enhanced Autopilot option to the Full Self-Driving option (Navigate on Autopilot, Autopark, Summon). They also shortened the name to just "Autopilot" and dropped the price from $ 5,000 to $ 3,000. The Full Self Driving option is available again, but now costs another $ 5,000 up from the previous $ 3,000. They were also released from Model X Standard Range.
Was it a good idea to announce all these changes at the same time as Tesla finally introduced $ 35,000 model 3? Too many changes at once can confuse buyers, existing owners and investors. Is this the chaos or is Tesla just carrying out the plan that had been all the time?
I received this follow-up message from Tesla last night. Clearly, they decided that they needed to prepare their position on the previous email following the announcement that they would close their Tesla stores: