Elon Musk reveals new Model 3 and buying a Tesla has never been cheaper

Tesla has announced a new edition of its more affordable Model 3 electric vehicle, which is available at the lowest starting price in the company’s history.

The new mid-range version of the Model 3 sedan is $45,000, which is down from the previous lowest price of $49,000. With the US tax incentives for driving an electric vehicle, Tesla says that brings the cost down to $35,000 and as low as $31,000 when fuel savings are taken into account.

In an announcement on Twitter, Elon Musk revealed the new variant offers a battery with a 260-mile range from a single charge. Naturally, it offers rear-wheel drive. The high range battery promises 310 miles, but that version of the Model 3 starts at $54,000.

There are still plans for an even cheaper entry-level model, which has a 200-mile range, starting at $35,000 (pre-tax incentives), but that won’t arrive for four to six more months, according to the e-car pioneer.

Related: Tesla Model Y launch

Considering the average cost of a new car in the US, is $35,541 Tesla vehicles are closing in on affordability for mainstream drivers.

In a statement (via TechCrunch), Tesla said: “As Model 3 production and sales continue to grow rapidly, we’ve achieved a steady volume in manufacturing capacity, allowing us to diversify our product offering to even more customer.

“Our new Mid-Range Battery is being introduced this week in the U.S. and Canada to better meet the varying range needs of the many customers eager to own Model 3, and our delivery estimate for customers who have ordered the Standard Battery is 4-6 months.”

Customers in the US and Canada seeking the mid-range model don’t have long to qualify for the tax-incentives currently on offer. Tesla shifted its 200,000th car earlier this year and that started the clock ticking on how long the discounts will apply. In order to qualify, buyers must take delivery of their Tesla vehicle before the end of the year.

As well as the new Model 3 variant, Tesla has also launched a simpler ordering page.

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