Tesla is finally selling a car for $35,000

By: Nicolas V.

Yes, it’s nearly three years after Elon Musk promised it, but now you can finally order a Tesla for $35,000.

Tesla on Thursday unveiled a “Standard Range” Model 3 sedan that sells for $35,000 before tax incentives — well below the most recent entry-level price above $42,000 — and said it will close many of its stores worldwide to cut costs and finance the discount.

The new, budget Tesla has range of 220 miles and a top speed of 130 miles per hour. For an extra $2,000, you can buy a slightly more souped-up Model 3 with a premium interior, a range of 240 miles and a top speed of 140 miles per hour.

The discounted Model 3 is “something we’ve been working toward since the beginning of the company,” Musk told reporters on a Thursday conference call with reporters

“It’s an incredible car,” Musk added. “My [Twitter] profile is literally the car you can buy for $35,000.”

You won’t be able to buy the Model 3 in stores, however. Tesla said it will shift all of its sales online, with Musk noting during the call that “some stores” will be shuttered, while existing stores would be “converted to galleries and information centers.”

That, in turn, will result in layoffs, Musk confirmed.

“There’s no other way for us to achieve the savings required to produce this car and be sustainable,” Musk said. “In transitioning to online-only, it effectively reduces our costs by 5 or 6 percent.”

Musk reversed course on his previous prediction of a slim first-quarter profit for Tesla, but said he believes the company will eke out a profit in the second quarter.

Asked about future Model 3 price cuts down the line, the South Africa-born billionaire said that customers should not get their hopes up.

“This is the lowest we could possibly sell this car,” Musk said.

Tesla shares were down 3.1 percent in extended trading, at $309.90.