Tesla To Close Stores, Take Orders For $35,000 Model 3
FREMONT (CBS SF / AP) -- Tesla says it is now taking orders for the long-awaited $35,000 Model 3, a car for the masses that is essential for the Bay Area-based electric car company to survive.
The company says to reach the lower price, it's shifting all sales worldwide from stores to online only. Some high-traffic stores, however, will remain open.
"Shifting all sales online, combined with other ongoing cost efficiencies, will enable us to lower all vehicle prices by about 6% on average, allowing us to achieve the $35,000 Model 3 price point earlier than we expected," the company said in its statement. "The important thing for customers in the United States to understand is that, with online sales, anyone in any state can quickly and easily buy a Tesla."
The company will offer the standard base model, which can go 220 miles (350 kilometers) per charge. It also will offer a $37,000 version with a premium interior that accelerates faster and can go 240 miles (385 kilometers) per charge.
Tesla started taking orders for the Model 3 in March of 2016, but until now hasn't been able to cut costs enough to sell them for $35,000 and make a profit.
The cheapest one that could be ordered until Thursday started at $42,900.
© Copyright 2019 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.
