Tesla (NADAQ:TSLA) Now Taking Deposits on a ‘Cheaper’ M-3
- Tesla is introducing a lower-priced version of its M-3 sedan.
- The base price will be $45,000; it will cost about $35,000 in California after federal and state tax rebates for as long as they last
- The company has long promised the M-3 would be a mass market EV, but it originally focused on building premium versions of the car and struggling to ramp up factory production.
Tesla is now taking orders for a “lower cost, mid-range” version of its mass-production EV, CEO Elon Musk announced Thursday on Twitter.
The base price will be $45,000, but in California (that’s where people buy them), it will cost $35,000 after federal and state tax rebates, Mr. Musk said. He neglected to mention as long as the rebates last, they begin to end in January unless Congress acts.
It makes one wonder how many more models are coming that he cannot make and deliver.
Tesla expects to begin deliveries in about 4 months, a company representative said. Meanwhile, Mr. Musk cannot build and deliver the EVs it already has deposits on that consumers are canceling.
The new mid-range version of the M-3 has a single motor and RWD (rear-wheel drive), and a battery pack that will go around 260 miles on a charge. The performance and long-range versions each have AWD (all-wheel-drive) and dual motors and battery packs that will go some 310 miles on a full charge.
CEO Musk said Tesla has set up a new web page to take orders for the lower priced M-3. On that page, customers can choose one of 3 versions of the M-3: the top-of-the-line performance version, the long-range battery one, and the new mid-range battery variant.
So far, the Tesla had only been offering more expensive versions of the $35,000 car for the masses.
The M-3 Performance has a base price of $64,000 before any options are added, and that’s before the tax incentives, but it also does not include features like the company’s “Autopilot” driver-assist system, which some customers choose to add on.
Mr. Musk originally touted the M-3 as the car it would mass-produce and price for mainstream consumers after 1st producing luxury vehicles in the M-S and M-X. Where he lured in more than 400,000 pre-orders for the car. But,Tesla is deep in ‘production and logistics Hell’ on the M-3, and so he up-sells the customers who do no cancel their orders. 4
This new twist appears to be a ploy to keep buyers in line, let’s see how that works…humm.
Tesla has no dealer network, only a few regional service centers in the US, and no financing to buy program.
The M-3 is not a car for the masses, Tesla, Inc. is no longer an investment grade high growth stock, it is a speculation for professionals, Caution!
Remember, it is your money and your responsibility.
Tesla’s shares finished trading at 263.91,-7.87, or -2.90% in NY Thursday.
HeffX-LTN’s overall outlook for the stock is Bearish to Very Bearish