Bengaluru — Electric-car maker Tesla said on Wednesday it was lowering the price of its Model 3 sedan by $1,100, citing the end of a costly customer referral programme.
The second price cut in 2019 brings down the cost of its least-expensive variant to $42,900, according to the company's website.
The starting cost of the Model 3 is now about $35,000, after about $8,000 of credits and fuel savings, Tesla CEO Elon Musk tweeted.
In a reply to a Twitter user asking Musk when Tesla would drop the Model 3 base price to $35,000, without credits, he said, "We're doing everything we can to get there. It's a super hard grind."
Tesla ended its customer referral incentive plan on February 1 after Musk tweeted that the referral programme was "adding too much cost to the cars, especially Model 3".
Tesla delivered fewer-than-expected Model 3 sedans in the fourth quarter and cut prices for all its vehicles in the US to offset a reduction in a green tax credit.
The company is rapidly ramping up production of its Model 3 sedan and lower prices could help it reach a broader customer base than its pure luxury vehicles.
When asked about lower prices in Europe, Musk tweeted that the value added tax of about 20% and import duties of about 10% usually result in a 30% higher cost in Europe.
Reuters
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