Tesla confirms (again) that the Model 3 will cost $35K before incentives

Tesla Model S
There are many reasons to buy a Tesla: classy styling, “Ludicrous” performance, and emissions-free commuting. However, one of the most notable cherries on top comes in the form of a $7,500 federal tax credit, which is awarded to all electric vehicle owners with batteries over a certain capacity.

Tesla will begin taking preorders for the upcoming Model 3 next month, and with its base price of $35,000 coming before incentives are factored in, the hit to your wallet could be far, far less.

Anyone who buys a new Tesla is automatically granted the aforementioned $7,500 credit by the feds, but many states offer their own incentives, which vary greatly. In California, Tennessee, and Massachusetts, battery electric vehicle owners get an additional $2,500 lopped off the sticker price, but Colorado residents can receive a whopping $6,000 in subsidies. Some states offer no incentives at all, and in Georgia, you get nothing more than access to the carpool lane. If you live in the right state, though, a brand new Model 3 could run you as little as $25,000.

In the end, this information is nothing new, as company CEO Elon Musk confirmed the Model 3’s pre-incentive price of $35,000 over a year ago at the Automotive News World Congress. He has reiterated the information several times since then, but still, the concept of a $25,000 electric car with a range of 200 miles or more is easy to get excited over. For reference, the average transaction price for a new car in the United States is $33,800.

Outside of cost information, range, and relative size — the Model 3 will be about 20 percent smaller than the Model S — little is known about Tesla’s upcoming sedan. We expect the vehicle to be unveiled in the coming weeks though, so keep your eyes (and your wallets) ready.

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