Tesla, after a series of unsurprising flip-flops, has made the Model 3 available at a more affordable price of $35,400 for the basic configuration. The move is deemed long-delayed given that Tesla CEO Elon Musk's original concept for the Model 3 is the easy accessibility of electric vehicles, meaning they will not be cheap but reasonably priced.
The rationale for the holdback was Tesla's plan to first generate enough revenues and make the company financially viable before thinking of pricing reconfiguration. Musk, according to BGR, has admitted that the Model 3 rolling out with lower price tags will lead to the early demise of the company. That is why budget-conscious Tesla and EV fans alike will have to wait until now.
It seems though that with the buyer-friendly Model 3, Tesla had trouble embracing the price adjustment. First, the online ordering of the vehicle was launched in February but the company scrapped the program in favor of in-store and over-the-phone transactions.
Then the carmaker belatedly figured that $35,000 is not the ideal sticker price for the entry-level Model 3 so the price was padded up by $400. The company explained that the price hike was implemented across the board and all Model 3 variants saw the same amount of increase.
Now, delivery of the base Tesla Model 3 has commenced and buyers have the option to pick between the Standard Range (SR) and the Standard Range Plus (SR+) models. The former, as mentioned, has an asking price of $35,400 while the latter is ready to be driven home if one is willing to pay $39,900. The two vehicles, Tesla said, are identical, hardware-wise.
The big difference is how the SR model's software will behave when in use. Due to its lower price, there will be functionalities on the Model 3 SR that users will be unable to access, no thanks to software-driven feature locks.
"Its range will be limited by 10 percent, and several features will be disabled via software (including our onboard music streaming service, navigation with live traffic visualization, and heated seats)," Tesla was reported as saying in a statement.
The limited range and live mapping restriction will be lifted with Tesla Model 3 SR+, which has been programmed to enjoy a range of up to 310 miles and the bonus of faster acceleration. But getting this means paying more.
It was clear that in selling the Model 3 in SR and SR+ flavors, Tesla would want buyers to pick the latter and pay close to $5,000 more in order enjoy the car with its full features implemented. But withholding specific features from customers just to encourage them to step up seems a bad move.
The better ploy, according to Electrek, is to activate all features on the Model 3 SR on a limited time and allow users to experience the smart vehicle in its fullness. This way, Tesla has a better chance of getting users to upgrade once the features they've gotten used to have been locked down, the report added.
