>> Elon Musk tweeting that Tesla has introduced a cheaper version of it's Model 3 priced at $45,000. Wait, wasn't the Model 3 supposed to sell for $35,000?>> In terms of price, well, of course, it'll be $35,000.>>
>> That's Musk back in March of 2016, initially touting the Model 3 at that lower price, which has yet to materialize.
But customers who plunked down a deposit for a $35,000 car may still be tempted to buy the higher priced vehicle. As Tesla says the new Model 3 can be delivered by the end of the year. Allowing consumers to enjoy a $7,500 electric car tax credit that gets slashed in half as of January first.
Reuters Correspondent Alexandria Sage.>> It's a strategic move by Tesla to spur sales to incite these people who have been sitting on the fence waiting for that low price car to be made. Now, they can present them with a slightly more expensive car, but it will get the subsidy.
So, hopefully, make them happy and be willing to turn over their money to Tesla.>> Bottlenecks in production created lots of drama for Tesla's founder and CEO, who often over-promised on delivery numbers. His pubic pot smoking and erratic Tweets also helping fuel wild swings in the company's stock price.
Meanwhile, the price tag of the Model 3 rose, the cheapest version sitting at $49,000 before Musk's latest announcement. The new $45,000 model has a mid-range battery that travels 260 miles, that's 50 miles less than the 2 more expensive versions. It also has rear-wheel drive as opposed to all-wheel drive, like the pricier versions of the Model 3.
Musk's leadership has been called into question lately. He's stepping down as Tesla's chairman for three years after settling with SEC for allegedly manipulating the companies stock price. By tweeting in August that he was considering taking the company private at $420 a share then backing off the plan. Sales of the midrange Model 3 are crucial as Tesla fights back competition from Mercedes-Benz and BMW.
And the company races to finally turn a profit.