DETROIT — Tesla is cutting US$1,100 from the base price of its car designed for the mass market, the Model 3.
The electric car company now says on its website that the car starts at US$42,900, still a ways from its goal of lowering the base price to US$35,000.
Tesla cut 7 per cent of its workforce last month to trim costs and reduce the price of the car. CEO Elon Musk says the Model 3 must be competitive with gasoline-fueled cars for the company to succeed.
For US$42,900 buyers will get a rear-wheel-drive Model 3 in black with Tesla’s lower-range battery that goes 264 miles per charge.
The price doesn’t include federal and state tax credits. The federal credit is now US$3,750, but that expires at the end of the year.