Tesla delivers Model 3 Standard Range Electric Vehicle for the masses

Tesla delivers Model 3 Standard Range Electric Vehicle for the masses

Tesla delivers Model 3 Standard Range Electric Vehicle for the masses

Moreover, Tesla is also changing the customer shopping experience. With the Ludicrous Mode upgrade, the Tesla Model S Performance now starts at $114,000, a whopping $18,000 less than its previous price of $132,000.

Although Musk corrected his mistake, the USA regulators slammed the Tesla CEO because he "once again published inaccurate and material information about Tesla to his over 24 million Twitter followers".

Tesla also announced that it is now moving to an entirely online sales model and will be shuttering most of its retail locations in the US.

Tesla shares were last down 8 percent at $293.57. In an article earlier this month for the website CleanTechnica, he said Tesla needed an extra 60-80 branches across European Union states. A survey by research firm BCG published a year ago suggested that 40 percent of customers worldwide are comfortable buying their next vehicle online.

Tesla is so sure its electric vehicles will meet expectations - the Model 3 has after all has been named the auto that "brings the most joy" - that it says customers purchasing online will be also able to to return the auto within 7 days for a full refund.

However, Musk pointed out in the email that 78 percent of all Model 3 orders were placed online and 82 percent of customers bought such models without ever taking a test drive.

Many have said Tesla was able to discount all vehicle models as a result of its decision to shutter physical stores. "It might be different if Tesla had the production capacity to drive volume and margin for this lower priced version, but they don't now and to add the incremental capacity would require significant additional capital investment", said Garrett Nelson from CFRA. The Model 3 is expected to be available in Australia as of mid-2019.

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Vandeventer still likes Tesla's innovative, forward-thinking nature, but worries about the short term.

As part of cost-cutting efforts, Tesla last month reduced its full-time headcount by 7 percent, following a similar cut of 9 percent to its workforce in June 2018. "And only Amazon is Amazon".

"The bears will focus on this news as a sign that lower profitability and demand are catalyzing this move and strategic pivot, which we strongly disagree with", Wedbush analyst Daniel Ives said in a note about Tesla to investors.

Meanwhile, U.S. dealers remain sanguine about their position in the sales chain.

The company attributed the potential loss to one-time charges and said it would likely be profitable in the second quarter. "The vast majority of consumers want to do some combination of both online and traditional shopping for new vehicles". But it's been impossible to actually buy the long-promised, $US35,000 ($49,006) base model of the vehicle that so many were hoping for to help them enter the electric future.

Tesla did need the lower-priced Model 3 to draw in that larger market they have been aiming for, but they will have to carefully weigh the benefits of selling a lot of cheaper cars against making greater profits, said Wedbush analyst Dan Ives. The next step up is the existing Mid Range Model 3 with a 264-mile range and a $40,000 price tag.

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