Tesla is $2,400 Per Car Away from Selling a $35,000 Model 3

Elon Musk has sent out an email to Tesla employees that states the current cost of a standard range Model 3 would be around $38,000. This seems to mean that with a 25% margin the car build cost is $30,400. In May, there was an Elon Musk tweet that building 10,000 units per week the cost could go to $28,000. The $28,000 build cost with 25% margin would hit the $35,000 sales price goal.

Elon seems to be asking cost efficiency gains of $2,400 per car to enable selling a base model Model 3 at $35,000.

Ten thousand parts and processes go into the Model 3. This means an average savings of 24 cents per part of process will mean reaching the goal of $35,000 Tesla Model 3 without needing any subsidies.

The lowest price version of the Model 3 that is available now is a $46,000 mid-range model, which gets 260 miles on a single charge. The $35,000 model is expected to get 220 miles on a single charge.

Musk believes Tesla is on target to begin sales of the $35,000 model early in 2019.

10 thoughts on “Tesla is $2,400 Per Car Away from Selling a $35,000 Model 3”

  1. These times have proven Tesla should NOT ever follow the GM/Ford model. Which are extremely outdated. No dealerships, not idled factories. You know what? Build 5 more tent assembly lines….then fold them when these cars are no longer selling like hotcakes or move to something that is.

  2. I expect cost to go down as they go up the learning curve. Also a major part of the cost is the batteries and I expect that to also go down with greater volume.

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