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Transportation The Almighty Buck

Tesla Launches Base Model 3 For $35,000 With Shorter Range, New Interior (electrek.co) 265

In a call with reporters Thursday, Tesla CEO Elon Musk said the company is finally launching the long-promised standard Model 3 with a base price of $35,000. "The automaker is now making several new versions of the Model 3 available with a shorter range and new interior options," reports Electrek. From the report: Today, Tesla sent an email to its retail stores the details of the announcement of the new options being available to order in the U.S. today and available as soon as next month. All the details are expected to become available in the next hour, but here's what we know so far: Customers are now able to order the $35,000 Model 3 with a standard interior and standard battery pack enabling 130mph top speed and 5.6s 0-60s acceleration. Tesla is also making a new "Partial Premium Interior" with better seats than the standard interior available with a different "standard range plus" battery pack for a $2,000 premium. The Model 3 Standard Range Plus results in 240 miles of range, a top speed of 140mph, 0-60mph acceleration of just 5.3 seconds. Tesla says that deliveries are starting within the next 2 to 4 weeks depending on the configuration in the U.S. In Europe, Musk said it will be available to order within the "next 3 to 6 months." Slashdot reader Rei provides additional details: The new unveiling introduced a whole slew of variants, including (price, range, top speed, 0-60, premium):

SR: $35K, 220 miles, 130mph, 5.6 seconds, non-PUP
SR+: $37K, 240 miles, 140mph, 5.3 seconds, partial-PUP
MR: $40K, 264 miles, 140mph, 5.2 seconds, PUP
LR: $43K, 325 miles, 140mph, 5.0 seconds, PUP
AWD: $47K, 310 miles, 145mph, 4.5 seconds, PUP
P: $48K, 310 miles, 162mph, 3.2 seconds, PUP

Pricing, ranges, and features have by and large significantly surpassed initial promises. For example, the Long Range (LR) variant was supposed to be a $9K premium over SR, with the Premium Upgrades Package another $5k, but now PUP is included in LR and the price difference is only $8K. Range and performance specs have been upgraded not just on new vehicles, but will also be upgraded on existing vehicles, where applicable, via software update. The price for Autopilot has dropped from $5K to $3K, and some features once planned to be premium-only -- including the glass roof and auto dimming, power folding, heated side mirrors -- are now standard. The Model S and X product line has also been modified, with higher performance at the top end and lower prices at the bottom.

To achieve cost savings, in addition to production optimizations and the recent layoffs, Tesla announced an unexpected strategy: they're closing most of their stores. Sales will only be conducted online. Instead of test drives, cars can be returned within 7 days or 1,000 miles at no charge. "Quite literally, you could buy a Tesla, drive several hundred miles for a weekend road trip with friends and then return it for free," Tesla said in their blog post.

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Tesla Launches Base Model 3 For $35,000 With Shorter Range, New Interior

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  • by Anonymous Coward on Thursday February 28, 2019 @06:37PM (#58196776)

    The one part that I think doesn't signal they are doing well is the closing of the stores. I know where I am there is a Tesla store in the mall and it's always packed. Granted, where I live (S. Fla) is a haven for Tesla vehicles - but still - I think cars are something people want a shopping experience with and I feel this will be a mistake for Tesla.

    • by omnichad ( 1198475 ) on Thursday February 28, 2019 @06:49PM (#58196836) Homepage

      cars are something people want a shopping experience with

      No. That is literally the worst part of car ownership.

      • by hackertourist ( 2202674 ) on Friday March 01, 2019 @02:50AM (#58198280)

        Haggling with the salesman is the worst part of car ownership. Test drives are (for me) an absolute requirement. I will not spend thousands on something I can't thoroughly evaluate beforehand.

      • by Luthair ( 847766 )
        Going to look at a car and drive it before you buy it is annoying? The part that people don't like is the people, thats a solvable problem - pay a reasonable salary not commissions.
      • by mjwx ( 966435 )

        cars are something people want a shopping experience with

        No. That is literally the worst part of car ownership.

        Then you've been buying cars from the wrong places. Dodgy Dave's used car emporium is like shopping at poundland, you're not there for the ambience, you're there to buy things for a quid each. I tend to shop at nicer places than Poundland.

        When buying a £30,000 car I expect someone who knows what their doing and a little bit of ceremony on delivery. When I picked up my M240i the BMW dealer gave me a short unveiling ceremony and a quick run down of the car. Sure it wasn't much but the fact they wante

    • by c6gunner ( 950153 ) on Thursday February 28, 2019 @07:48PM (#58197156) Homepage

      The one part that I think doesn't signal they are doing well is the closing of the stores.

      Tesla never wanted stores in the first place. Part of their business model right from the start was a desire to upend the existing "dealership" model. They were forced to open stores because the laws in some (many?) states prohibited manufacturers from selling direct to consumers.

      • by AmiMoJo ( 196126 )

        No such laws in most of Europe. The stores are just because people don't want to spend â100,000 on a car they haven't even seen in the flesh, let alone had a chance to test drive.

        I guess they feel that now they have reached critical mass and no longer need to offer those opportunities. Will be interesting to see if it works.

      • by Hodr ( 219920 )

        That is literally the opposite of what happened. They couldn't direcly sell vehicles at their stores in some places because of the "dealership model" which is why their "stores" only let you test drive and tell you about the car. You then have to buy the car online anyways. You CANNOT hand anyone at the store a bag of cash and drive away with a car.

  • Closing stores? (Score:5, Insightful)

    by Camembert ( 2891457 ) on Thursday February 28, 2019 @06:42PM (#58196802)
    This doesnâ(TM)t look like a good idea to me. A car is something that most consumers want to sit in and explore in the showroom. It is not like a book you order online.
    • by anegg ( 1390659 )
      Closing *many of* the stores... some stay open. From the article:

      Shifting all sales online, combined with other ongoing cost efficiencies, will enable us to lower all vehicle prices by about 6% on average, allowing us to achieve the $35,000 Model 3 price point earlier than we expected. Over the next few months, we will be winding down many of our stores, with a small number of stores in high-traffic locations remaining as galleries, showcases and Tesla information centers. The important thing for customers in the United States to understand is that, with online sales, anyone in any state can quickly and easily buy a Tesla.

      • by rtb61 ( 674572 )

        It would have been far smarter to alter the nature of Tesla stores. Instead of just selling their cars, they should have started selling a range of other automotive stuff. Their vehicles could also probably use a display redesign. Two displays, a basic one for car functions built in and a lockable dock of a tablet, as a digital services expansion on the vehicle. So you could buy the vehicle and then come back to bay a particular model of the tablet, more features, more capable, larger size, add another lock

        • Congratulations, you just created a market in Tesla dockable tablets. Now thieves have a reason to smash car windows and steal them.

        • What else, Tesla branded phone, Tesla branded clothing and Tesla branded consumables,

          I'm wearing Tesla branded underwear right now!
          Although, I suspect it has nothing to do with the car brand "Tesla"- got it off Amazon and actually some of the most comfortable undies I've worn!

          So yeah, there is already a clothing company called Tesla, they make decent stuff... I suspect they're not the same "Tesla" though.

    • by Morgaine ( 4316 ) on Thursday February 28, 2019 @06:58PM (#58196896)

      A car is something that most consumers want to sit in and explore in the showroom.

      Apparently Tesla is giving potential customers 7 days of full possession and 1,000 miles of test drive instead, if I understood it correctly.

      That seems enormously superior to sniffing around in a showroom for an hour, to me at least.

      • by Miamicanes ( 730264 ) on Thursday February 28, 2019 @07:45PM (#58197136)

        If Tesla were smart, they'd cut a deal with someone like Hertz or Avis, so that if you wanted to test-drive a Tesla, you could go rent one for a week (at some non-free price that would be considered a fair price if you were just renting it to drive for a week while traveling), then apply the price of up to 4 rental weeks from the past year to the purchase price of a Tesla if you decided to buy one.

        IMHO, that would kill two birds with one stone... it would avoid the problems of dealing with returned cars from people who changed their minds (since the same cars would be rented over and over), while simultaneously drawing in potential buyers who might decide to rent a Tesla for a week while on vacation & decide that they absolutely LOVED it. It also minimizes the impact of regional availability... a family from a small town in North Dakota or Montana could rent a Tesla while vacationing in Orlando, Miami, or Las Vegas for a week just as easily as a family from Seattle or Atlanta. It also minimizes the risk to the people trying one out... if even a "normal" rental car in Miami is going to cost $200 for the week, and you can get a Tesla for $50-100 more, lots of people who might not have gone out of their way just to rent a Tesla in their hometown might say "fuck it, I'm on vacation, gimme the Tesla!"

        Honestly, I think their BIGGEST problem would be supplying with the rental car company with enough cars to satisfy the demand. They probably WOULD have to start off for the first year or two by limiting it to just a couple of very popular vacation markets... say...

        year 1: Orlando and Las Vegas

        year 2: Miami, Washington DC, Los Angeles, Chicago

        year 3: every remaining international airport in Florida, plus every city that currently HAS a Tesla showroom. I'd expect that over time, places like South Florida would probably have Tesla-equipped Avis/Hertz locations at BOTH the airport AND some off-airport suburban locations that seriously blurred the line between "rental car office" and "de-facto Tesla showroom".

        Their biggest problem would be convincing Hertz or Avis to keep the cars in circulation for 2-3 years instead of replacing them all annually (since otherwise, Tesla would be struggling just to keep the rental car company fully supplied, let alone anyone else).

        • Yes it is a genius idea. Until you factor in how disgusting rental cars are when returned and the amount of mechanical abuse rental cars receive. I would assume that Tesla would want to give the best possible impression to their customer as possible. Relying on a car that is managed by a rental agency as the quality representative for future sales is very risky.

        • I think that's a great idea. I don't know if they are still doing it, but maybe 2-3 years ago Nissan announced a deal where they provided Nissan Leafs to Orlando rental car companies. Disney added a bunch of chargers on their properties and was involved in the deal. I had a Nissan Leaf on lease for 3 years to fill a need for a daily commune to work car while an older car I had was wearing down due to age and the stop and go traffic demands of my work commute. I loved the Leaf. My friends loved the Lea
      • by R3d M3rcury ( 871886 ) on Thursday February 28, 2019 @08:24PM (#58197274) Journal

        Except that you actually have to pay for it.

        I mean, before I plunk down $35,000 for a car, I’d like to try it out first. Maybe take it for a test drive or something. And I don’t even want to think of the issues of financing that purchase and then deciding I don’t want the car...

      • Yes, buying an entire car just to evaluate the drive against competitors is a vastly superior to just going to a dealership and drive the thing for free.

    • By killing the stores, Tesla appears to be counting on word of mouth to sell cars. The people on here that think buying a car online is a good idea probably have friends with a Tesla and have had at least a little hands on. A seriously stripped down model that only comes in one color seems just the trick for people that want to be able to say "I own a Tesla". Thanks but no thanks.

    • No doubt that stores help to sell cars. Equally, it seems likely that a 6% discount will help to sell cars.

      So the question is which will sell more:

      Car @ $40k - no store, but free return
      Car @ $42.5 - you get to sit in a car and (presumably) do a test drive

      (picking the $40k option as a representative middle ground)

      as to the cost of doing returns, If we guess that 10% are returned, and those are then re-sold at a 15% discount, that's a cost of ~ $600/sale (ignoring the cost of delivery/collection)
      • For Tesla fanboys, the lower price will definitely drive more sales. Problem is: there is a limited amount of fanboys. Once they all have their car, you'll have to sell them to Regular Joe which is way, way harder.

        The million dollar question is: how many fanboys are there? And are new fanboys created by word-of-mouth? I certainly don't know.

        Of course it's stupid to think anybody in their right mind would order and buy a car in order to just evaluate it, while you can simply go to any Hyundai, Kia, Volkswage

        • For Tesla fanboys, the lower price will definitely drive more sales. Problem is: there is a limited amount of fanboys. Once they all have their car, you'll have to sell them to Regular Joe which is way, way harder.

          Consumer Reports recently dropped Tesla Model 3 as a recomended car. They seem to be shipping with lots of defects.

          I want Tesla to do well, I guess you would call me a semi-fanboy (I like the look of the Rivians more though- although that's definitely out of my price range). I wouldn't buy a Model 3 though because they are problematic. Dropping the price doesn't change that.

          Dropping price will help sell to some Regular Joes- but any who do their homework will probably be put off. I am. I'll stick with

  • by SuperKendall ( 25149 ) on Thursday February 28, 2019 @06:45PM (#58196818)

    Instead of test drives, cars can be returned within 7 days or 1,000 miles at no charge

    After a thousand miles driving, I'd say it's pretty obvious there's going to be no charge.

  • by ghoul ( 157158 ) on Thursday February 28, 2019 @06:54PM (#58196880)

    The Hyundai Kona Electric is now available to order with deliveries on Mar 15. Its 37000 or 27000 after tax breaks in California. 260 Mi range and an SUV rather than a Sedan.
    The only problem is its so much in demand even though the MSRP is 37000 dealers are charging 41000 as its a better car than the 42000$ Model 3.
    Now that the 35000$ Tesla has got released maybe the price premium on the Kona Electric will go down
    Thanks Elon. I was in 2 minds about the Kona Electric purchase. Your timely move will let me get it for $27K. (Note its still cheaper than the base model Model 3 as Hyundai gets the entire 10K tax break)

    • by guruevi ( 827432 )

      Is it a rich person tax break or a rich person discount? I've lived in full 3 bedroom houses worth the price of that car.

      • by ghoul ( 157158 )

        Yes it is a rich person tax break but then so does anything to do with the Green Movement - whether it is the National Park system which only the upper middle class can afford to go enjoy, the solar panel subsidies which only upper middleclass homeowners can afford or embassies all around the world to help stranded travellers (again dont think too many people working minimum wage jobs are travelling internationally)
        A govts primary job is to protect the rich from the poor and shift as much money as possible

        • whether it is the National Park system which only the upper middle class can afford to go enjoy,

          I go to National Parks BECAUSE I can't afford to go anywhere else. If you think you need to be wealthy to go to a National Park you're crazy. Some of the best places to go for those of us who don't have the money they would like.

      • Is it a rich person tax break or a rich person discount? I've lived in full 3 bedroom houses worth the price of that car.

        I agree that spending $41,000 on a car is crazy - But I suspect very few people walk into a dealership with a bank draft for $41K + sales taxes. Most of them either "lease" or finance over 84 months.

    • by SuperKendall ( 25149 ) on Thursday February 28, 2019 @07:12PM (#58196964)

      260 Mi range and an SUV rather than a Sedan.

      Does it have AWD, or even an option? Doesn't seem ike it from the specs.

      Any quick charge ability? Again reading through the product page, seems like an overnight charge,

      6.2 inches of ground clearance - Just 0.3 inches more than a MINI countrman, 0.7 more than a model 3 so claiming it is "an SUV" is kind of misleading.

      60 mph in 6.4 seconds.

      Not sure in what way this car is actually better, except maybe a bit more interior cargo space. By any other metric it is not as good or useful.

      As someone else said in another comment, without some approach to long range quick charging it's not a viable option for a lot of people (though I guess you could buy a Kona Electric for everyday use, then a Tesla for roadtrips and return it).

      • by AmiMoJo ( 196126 )

        Keep in mind that you need to compare with the $35k Model 3, which is similarly priced.

        I'm glad I cancelled my Model 3 pre-order now and got a Kia Niro. It's similar to the Kona. The comparison is about what I expected.

        Model 3 Pros
        + Slightly more sporty performance
        + Supercharger access

        Cons
        - Lower range
        - Smaller (https://youtu.be/2OM1UsEAPe4)
        - Very noisy (https://youtu.be/GzQdkwmq78s)
        - Not so good (auto wipers are jank) in the rain (https://youtu.be/hCv_Ha0oWjE)
        - Touch only controls for a lot of essential st

        • Manual cloth seats are a bonus. Leather (or more commonly, "Nappa Leather", aka plastic) looks nicer, but it's inferior in every other way.

          Touch controls suck, though

          • by AmiMoJo ( 196126 )

            Kona and Niro have real leather, much nicer. Also heated and ventilated seats for the same price as the base M3 that lacks them.

      • by AmiMoJo ( 196126 )

        Oh and to answer your question, it can charge at 100kW.

        The shape is a CUV, kinda sub SUV but you get a hatch back (Model 3 rear door is very small and lets water in) and it's taller and easier to get in and out of.

      • by Luthair ( 847766 )

        Does it have AWD, or even an option? Doesn't seem ike it from the specs.

        Speaking as a Canadian - basically no one needs AWD, just buy appropriate tires.

        6.2 inches of ground clearance - Just 0.3 inches more than a MINI countrman, 0.7 more than a model 3 so claiming it is "an SUV" is kind of misleading.

        Its a cross-over which is the most popular car type these days /shrug

        Not sure in what way this car is actually better

        Well, it comes from a real car manufacturer with a proven record of reliability. So you know it won't arrive with say a wheel different than the others and be in constant need of repairs.

        As someone else said in another comment, without some approach to long range quick charging it's not a viable option for a lot of people (though I guess you could buy a Kona Electric for everyday use, then a Tesla for roadtrips and return it).

        Their site says an hour to 80% /shrug

    • by Rei ( 128717 ) on Thursday February 28, 2019 @07:21PM (#58197016) Homepage

      LOL. Are people still pretending that the Kona is an "SUV"? Have you sat in the back seat? It's only suitable for amputees. It's a "CUV", which only describes form factor, not size.

      The problem is not demand but production. They're making them in tiny quantities, because Hyundai earns basically nothing on its EVs. [goauto.com.au]

      • by ghoul ( 157158 )

        Obviously I have not sat in one as its not available to general public yet but all reviewers have given it much better reviews than Model 3 as far as internal space is concerned.
        The SUV movement in the US is more about a high driving position with better visibility than any real Sport or Utility. Noone takes their SUVs offroading. THey take them to the Safeway and want to have a high driving position so that if they have an accident they are not in a sedan where the SUVs bumper might come into your windshie

        • by drinkypoo ( 153816 ) <drink@hyperlogos.org> on Thursday February 28, 2019 @08:21PM (#58197266) Homepage Journal

          Tesla unfortunately for them has to make money on each car but thats not my problem.

          Munro & Assoc. claims that Tesla will make a profit even at $35k. They didn't start sooner because they had many customers at a higher price point, and more profit is better... plus they did need the money

          • by AmiMoJo ( 196126 )

            Tesla said today that they are losing money now. They may eventually make a profit on $35k cars, once they get the service issues sorted out to reduce warranty costs, and further increase volume and manufacturing efficiency/yield.

            Their real problem is the battery packs though. Cylindrical cells are not cheap and add significant extra weight. They need to switch to pouch to be competitive with Korean manufacturers on price per kWh, which means big investment and probably some significant patent licences.

        • by Rei ( 128717 ) on Friday March 01, 2019 @07:04AM (#58198700) Homepage

          Obviously I have not sat in one as its not available to general public yet

          What market are you in? Kona Electric has been out in Europe for quite a while.

          Obviously I have not sat in one as its not available to general public yet but all reviewers have given it much better reviews than Model 3 as far as internal space is concerned.

          Name one. I've been in in both. It's not even close.

          The SUV movement in the US is more about a high driving position

          No, a SUV is a large vehicle built on a truck frame. A CUV is a vehicle have a SUV-like form factor, but of any size (large or small) and with unibody construction.

          I'm warning you for your own good: if you're waiting for the Kona because you're expecting it to be some "SUV", you're going to be seriously disappointed. This is the back seat. [automobilemag.com]. Here's the size of the vehicle [ytimg.com] compared to a person. That doesn't mean "don't get the car". As far as non-Tesla EVs go, there's nothing "wrong" with it. But it's not an "SUV". Keep your expectations in check.

          (Model 3, by contrast, is much larger inside than most people expect, particularly in the front).

          BTW: If you're looking for an EV like the Kona (aka non-Tesla) whose back seat isn't cramped, I'd recommend the Kia Niro. Its front and trunk are pretty similar in size to the Kona, but its rear seat is much larger. [autocar.co.uk] Hyundai and Kia have a manufacturing partnership, so their vehicle lines are pretty similar.

          • by x0 ( 32926 )

            No, a SUV is a large vehicle built on a truck frame.

            Not really. Might have been true ~20 years ago. Today, I believe the only truck framed SUVs still available new are the Toyota 4Runner and the truck based Suburban (and derivatives), the Expedition, and some Jeeps.

            Everything else is unibody. Pickups are still body on frame due to towing capacity.

            m

      • by AmiMoJo ( 196126 )

        The Niro is considerably bigger than the Model 3 though. It depends what you prefer - choice is good.

        The limit on production is the number of batteries available. They already doubled this year from 20k to 40k, and LG is pushing to ramp that up even further.

      • by Luthair ( 847766 )

        The problem is not demand but production. They're making them in tiny quantities, because Hyundai earns basically nothing on its EVs. [goauto.com.au]

        Coincidentally neither does Tesla ;)

  • by guruevi ( 827432 ) on Thursday February 28, 2019 @06:56PM (#58196892)

    Lemon and warranty laws allow you to return a car anywhere from 4 weeks to 3 months or even longer in some EU jurisdictions.

    Not sure whether online sales get around local (sometimes down to city) laws but I'm sure 7 days won't fly in many places.

    • The US has some pretty good lemon laws, depending on the state. Of course, like most consumer/labor protection laws, companies in the US tend to bank on people not knowing and enforcing their rights.

    • by AmiMoJo ( 196126 )

      In fact in the UK if you have bought a car online or have not had a test drive prior to receiving it you can reject it for any or no reason in the first two weeks.

      It's still a hassle because there is paperwork, you might have finance or whatever, but you have that right.

  • "SR: $35K, 220 miles, 130mph, 5.6 seconds, non-PUP"

    Joke: It can only go a maximum of 130mph? Too slow. I'm not buying one.
    • by sad_ ( 7868 )

      except for german autobahn there is nowhere i can drive legally faster then 130mph.
      even the 5.6 second accel is way too fast (for most people).

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