Economy

Tesla drops mid-range Model 3 price, again

Tesla drops mid-range Model 3 price, again

The price drop is another in a series of reductions made by the EV maker, the last of which occurred in the new year when Tesla's USA federal tax credit was reduced by half from $US7,500 to $US3,750.

"Getting those costs down...is what allows us to lower price and become financially sustainable and achieve goal of environmental sustainability", Musk said. The price cut does not quite offset the disappearance of the tax credit for Tesla buyers, but it does offer a partial redress for it.

Rows of new Tesla Model 3 electric vehicles are seen in Richmond, California.

In reply to a recent tweet, CEO Elon Musk noted the company is doing everything it can to drop the Model 3 base price to $35,000, without credits.

Tesla continues to display pricing in a creative manner.

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Tesla slashed the price of the Model 3 by $1,100, bringing the cost of its cheapest model down to about $42,900 before incentives, according to the company's website.

"The demand for - the demand for Model 3 is insanely high".

Tesla ended its customer referral incentive plan on february 1 after Musk tweeted that the referral program was "adding too much cost to the cars, especially Model 3".

On Twitter, Tesla fans weren't thrilled about spending more than $35,000 on the Model 3 and were annoyed about the slight price drop.

After a rare stretch of profitability and record-setting production and delivery numbers, Tesla now says that it will cut 7 percent of its workforce as part of a cost-cutting effort - the second.