Tesla Knocks $1,100 Off Price of the Model 3 - NBC10 Boston

Tesla Knocks $1,100 Off Price of the Model 3

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    NEWSLETTERS

    Tesla Plans to Cut 7 Percent of Its Workforce

    Saying the road ahead was "very difficult," Tesla's CEO Elon Musk said Friday that the company would be cutting its staff by about 7 percent. Scott McGrew reports.

    (Published Friday, Jan. 18, 2019)

    Tesla is cutting $1,100 from the base price of its car designed for the mass market, the Model 3.

    The electric car company 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.