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BREAKING NEWS

Tesla launches new $45,000 Model 3

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Tesla launches new $45,000 Model 3

Tesla launches new $45,000 Model 3
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Joe White(Reuters)
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(Reuters) - Tesla Inc <TSLA.O> on Thursday introduced a new $45,000 version of its Model 3 sedan on its website, launching the car as U.S. tax breaks for Tesla cars are about to decrease. According to the website, the rear-wheel-drive model has a "mid range" battery, a range of 260 miles, 50 miles less than the long-range battery that the more expensive Model 3 is equipped with.

The new version has a delivery period of six to 10 weeks, according to the website, which would customers eligible for the current $7,500 U.S. tax credit if they take delivery by the end of the year. The tax credit for Tesla cars will drop by half on Jan. 1.

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Although Tesla has promised a base-level version of the Model 3 priced at $35,000, so far it has only produced higher-cost versions starting at about $49,000. Tesla has said that it would not manufacture the base-level version of the Model 3 this year.

Adding the mid-priced version of the Model 3 appears to be a strategic way to lure possible buyers who had been waiting for the lower-priced version. It is not clear how many of the more than 400,000 reservations for the Model 3 are for the base models.

(Reporting by Uday Sampath in Bengaluru; Editing by Sandra Maler and Leslie Adler)

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