Tesla Model 3 $1,100 Price Off, Ends Referral Program To Make Second Price Slash Possible As Production Rises

Tesla Model 3 Slashes Off $1,100 off its original price
Tesla Model 3 Slashes Off $1,100 off its original price (Photo: Pixabay/Free-Photos)

Tesla Model 3 brings good news to Electric Vehicle buyers as the company's most affordable vehicle reduces the price for the second time this year. This move comes as the affordable EV's production finally ramped up.

The Daily Mail UK hints that Elon Musk, Tesla's Chief Executive Officer recently announced that the company is cutting off another $1,100 off the selling price of Tesla's Mid Range Battery Model 3. That makes Model 3 which was previously priced at $44,000 cheaper selling now at $42,900.

In an earnings call, Musk stated that getting the said costs down - variable costs and fixed costs - is what allows Tesla to lower the price and be financially sustainable and achieve their mission of environmental sustainability.

The Tesla CEO further added that the company has to be an absolute zealot about and that they wanted a broken record about this. He added that it is about cost, cost, cost, and cost.

To offset the tax credit reduction earlier this year, Tesla initially gave away $2,000 off for Model S sedan and Model X SUV, the company's more expensive models. While with Model 3, the company's most affordable vehicle buyers received a $1,000 discount.

The consecutive giving away of discounts came after the success of the Tesla Model 3 as well as the Model S sedan and Model X SUV sales. The rapid increase in sales triggered an EV tax credit reduction of up to $7,500. This means that a $3,750 tax credit is given to the buyer for buying a Tesla EV. The huge amount of tax credit prompted the company to give away more discounts to their buyers.

The Model 3 Mid Range Battery model comes with 0-60 mph time of 5.6 seconds and rear-wheel-drive. Tesla's most affordable electric vehicle boasts at 264 miles of range.

The Tesla Model 3 $1,100 discount, however, fails to fulfill what reports fabled in the past. Years ago, a rumor surfaced that Model 3 will be sold at a very cheap base price of $35,000.

Meanwhile, as a part of their cost reduction, Tesla ended the referral program on February 1. The move fulfilled what Elon Musk announced through his Twitter account that they are ending the program which cost much more than they realized, according to Fox Business.

The referral program rewards the buyers who purchased a Tesla Model S, Model X or Model 3. They can give their friends referral codes in exchange for six months of free charging.

© 2019 Business Times All rights reserved. Do not reproduce without permission.
Sign Up for Newsletters and Alerts