Tesla Motors, an energy-efficient car company, announced last year that it would be offering a more affordable version of its Model S luxury sedan.
In September, Tesla Motors CEO Elon Musk tweeted a possible price tag for the upcoming Model 3. This model is an electric-powered car that costs around $35,000 before tax incentives from federal and state governments.
"Model 3, our smaller and lower cost sedan will start production in about 2 years. Fully operational Gigafactory needed," Musk said.
Model 3, our smaller and lower cost sedan will start production in about 2 years. Fully operational Gigafactory needed.
— Elon Musk (@elonmusk) September 2, 2015
He also added that pre-orders for the electric car would kick off on March 31. They would begin production of the vehicles in 2017 if time permits.
The $35,000 price tag is definitely on the cheaper side as compared with the traditional gasoline-run vehicles. The company is clearly aiming at the American mass market. They are not after people who can afford two or three high-end Tesla car models.
While the company has not made any further announcements, some reports have stated that the Tesla Model 3 sedan might be even cheaper than expected.
However, these reports are probably pointing to the fact that there will be tax incentives or credits for people who are going to buy electric-powered vehicles. In federal incentives, buyers would receive a $7,500 tax credit.
There will also be state tax incentives, but that depends on the state's policies. For instance, Colorado has tax incentives of about $6,000. If this tax credit is added to the federal tax incentives, the price of Tesla's Model 3 could only be around $21,500.
With all the tax incentives that people get after buying Tesla's Model 3, the company is clearly making a statement. It aims to mass produce its electronic cars for the use of American motorists.
Tesla Motors initially launched the Roadster, a luxury vehicle that has a six-figure price tag. However, the company reportedly received criticism because of the pricing.
"We did, I think, receive some unfair criticism because we had the Tesla Roadster, and people would say, 'Well, why are you making this expensive sports car?' As though we somehow felt that there was a shortage of sports cars for rich people or something," Musk said in an interview at that time.
He said that oftentimes, he had to directly tell people that their goal is to push the electric car revolution. Musk said that they needed time to refine the technology they have been using.
When that initial release gained attention, it unveiled the Model S. The car costs slightly lower at about $70,000.
During the first quarter of 2016, the company will also release its newest model, Model X, an SUV. The vehicle is more expensive than the Model S, but it has Falcon Wing doors so that passengers can easily access the second and third rows of the vehicle.
Tesla's Model X: Quite Possibly The Coolest SUV On The Planet
However, Model X has long been delayed. It was supposed to hit the market a couple of years ago. While the vehicle launched last year, only a fraction of the pre-orders have been delivered.
Tesla Motors definitely has a lot of things to do in so little time. Until now, the Model S high-end sedans are still rolling out, while a large portion of the Model X units has not been released yet.
While the affordable and cheaper Tesla Model 3 shows a lot of promise as a common man's vehicle, it better arrive on time. This would allow consumers to enjoy the bundled tax credits.
[Photo by Joe Raedle/Getty Images]