Tesla drops mid-range Model 3 price, again

Linda UK  YouTube

Linda UK YouTube

Tesla has lowered the price of its Model 3 by $1,100 amid reports that USA sales fell precipitously in January despite a $2,000 reduction that went into effect at the beginning of the month.

Now, Tesla has updated its website to the new pricing which shows that once the federal tax credit of $US3,750 and a fuel savings (based on 10,000 miles and a cost of $US2.85 per gallon) are applied, United States drivers can buy the mid-range Model 3 for $US34,850 ($US49,049).

Tesla cut 7 percent of its workforce last month to trim costs and reduce the price of the vehicle. Elon Musk promoted the new price cut on Twitter by pointing out that it brings the effective cost of ownership below that mark after federal tax credits and fuel savings over a similar gas-powered vehicle.

A Tesla Model 3 now starts at $58,600 CAD for the Mid Range Battery, Rear-Wheel Drive model in Canada.

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The federal electric vehicle tax credit, which lowers the cost of a Tesla, dropped to $3,750 in January and will be halved again this summer before disappearing completely in 2020. The federal credit is now US$3,750, but that expires at the end of the year.

"We're doing everything we can to get there [$35,000]", Musk wrote on Twitter after the latest price change. "It's a super hard grind", Musk tweeted.

This price drop comes on the heels of another Tesla service update: On Feb. 2, the company ended its customer referral program, which allowed Tesla owners to earn prizes with referrals. A spokesman said the program cost far more than the company had realized.

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