PALO ALTO (CBS SF / AP) – Bay Area electric car company Tesla is cutting $1,100 from the base price of its car designed for the mass market, the Model 3.

The carmaker now says on its website that the car starts at $42,900, still a ways from its goal of lowering the base price to $35,000.

Tesla cut 7 percent of its workforce last month to trim costs and reduce the price of the car. CEO Elon Musk says the Model 3 must be competitive with gasoline-fueled cars for the company to succeed.

For $42,900 buyers will get a rear-wheel-drive Model 3 in black with Tesla’s lower-range battery that goes 264 miles per charge.

The price doesn’t include federal and state tax credits. The federal credit is now $3,750, but that expires at the end of the year.

© Copyright 2019 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.

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