Tesla has confirmed the $35,000 price-tag for its long-awaited Model 3 electric car is before a slew of tax incentives are deducted.
The official word from the e-car pioneer builds on hints from Elon Musk dropped over a year ago.
We can confirm it’s $35,000 before incentives,” a Tesla spokeswoman told Bloomberg. “We haven’t changed our minds.”
It means, with the potential for $10,000 in federal and state tax incentives, drivers may get the Model 3 sedan for just $25,000.
The Model 3, which will be officially unveiled in March, will be the first model deemed affordable for mainstream drivers.
The Model S starts at $70,000 pre-incentives, while the luxury SUV Model X starts at $80,000, also before any credits are applied.
Lowering that barrier to just $25,000 would put an e-car into the realms of affordability for millions more drivers.
Recent reports have suggested the Model 3 will feature the same iPad-like centre console and boast the cabin site of a BMW 3 series.
Speculation has also suggested Musk’s company will look to recoup costs charging drivers for supercharging, which has been free for Models S and X.
A report from Electrek also claimed the company is planning to launch a second car, built on the same platform, which may be Model Y crossover model, previously hinted at by Musk.
In 2016, Tesla is facing increased competition in the sector. In particular from Chevrolet, which announced a fully electric version of the Chevy Bolt at CES 2016.
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