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Tesla Confirms Model 3 Price of $35,000
Tesla confirmed on February 9 that the price of the Model 3 will be $35,000 before any incentives. Spokesperson Khobi Brooklyn says it is on time and the company will have a lot more to say when the official reveal occurs in late March.
Bloomberg reported on February 9 that the starting price for the upcoming Model 3 will indeed be $35,000. That information was confirmed by Tesla spokesperson Khobi Brooklyn, who told Bloomberg, “We can confirm it’s $35,000 before incentives. We haven’t changed our minds.” More than a year ago, Elon Musk told reporters, “When I say $35,000, I’m talking about without any credits.”
EV incentives start with the $7,500 federal tax credit that anyone who buys a qualifying electric or plug-in hybrid car is eligible for. (That’s assuming the buyer actually has a federal tax liability of $7,500.) On top of the federal credit, many states offer incentives of their own. Colorado has the highest state benefit — $6,000. California, Massachusetts and Tennessee offer EV buyers $2,500. Rhode Island has just announced a $2,500 incentive, but there are only enough funds to cover less than 100 cars before the money runs out.
That means a Colorado resident could potentially park a Tesla Model 3 on the driveway for as little as $21,500. The average price of a new car today is $31,000, according to Bloomberg New Energy Finance analyst Salim Morsy. Almost all the mass market vehicles above that price are SUVs or trucks, Morsy says. The BMW 3 series sedan is the closest vehicle in size to the Model 3 that sells more than 100,000 units a year. It’s starting price is $35,000 and, of course, there are no incentives to buy one.
Before we get carried away, though, there are a few speed bumps on the road to the $35,000 Model 3. Tesla will reveal first pictures of the Model 3 next month but it’s likely that Tesla will offer Signature Series cars in its initial run for those willing to pay large deposits. After all, that’s what it did with the Model S and Model X. Those Signature Series cars were priced considerably higher than many people expected.
There is also the possibility that the Model 3 doesn’t go on sale in 2017. Morgan Stanley analyst Adam Jonas is on record as saying he doubts the Model 3 will arrive before 2018. And when it does, early cars may be loaded with expensive options the way the Model X Signature Series cars were. Jonas wouldn’t be surprised if the first cars off the assembly line were priced close to $60,000.
Keep in mind, the federal tax credit begins to phase out after a manufacturer sells 200,000 electric cars. If the Model 3 is delayed, Tesla may be close to the point where that phase out begins. As Bloomberg says, at some point, that $35,000 Model 3 is going to just be a $35,000 Model 3, subject to whatever state incentives are available.
Want to know more? You will have to wait for the March reveal. “The Model 3 is on time, and everyone is going to learn more about it at the end of March,” Khobi Brooklyn says. “That’s when we’ve committed to talking about it and giving a really great update, and that’s what we’re going to do.”
Chart: Bloomberg Business. Photo credit: Tesla Motors
News
Tesla aims to combat common Full Self-Driving problem with new patent
Tesla writes in the patent that its autonomous and semi-autonomous vehicles are heavily reliant on camera systems to navigate and interact with their environment.
Tesla is aiming to combat a common Full Self-Driving problem with a new patent.
One issue with Tesla’s vision-based approach is that sunlight glare can become a troublesome element of everyday travel. Full Self-Driving is certainly an amazing technology, but there are still things Tesla is aiming to figure out with its development.
Unfortunately, it is extremely difficult to get around this issue, and even humans need ways to combat it when they’re driving, as we commonly use sunglasses or sun visors to give us better visibility.
Cameras obviously do not have these ways to fight sunglare, but a new patent Tesla recently had published aims to fight this through a “glare shield.”
Tesla writes in the patent that its autonomous and semi-autonomous vehicles are heavily reliant on camera systems to navigate and interact with their environment.
The ability to see surroundings is crucial for accurate performance, and glare is one element of interference that has yet to be confronted.
Tesla described the patent, which will utilize “a textured surface composed of an array of micro-cones, or cone-shaped formations, which serve to scatter incident light in various directions, thereby reducing glare and improving camera vision.”
The patent was first spotted by Not a Tesla App.
The design of the micro-cones is the first element of the puzzle to fight the excess glare. The patent says they are “optimized in size, angle, and orientation to minimize Total Hemispherical Reflectance (THR) and reflection penalty, enhancing the camera’s ability to accurately interpret visual data.”
Additionally, there is an electromechanical system for dynamic orientation adjustment, which will allow the micro-cones to move based on the angle of external light sources.
This is not the only thing Tesla is mulling to resolve issues with sunlight glare, as it has also worked on two other ways to combat the problem. One thing the company has discussed is a direct photon count.
CEO Elon Musk said during the Q2 Earnings Call:
“We use an approach which is direct photon count. When you see a processed image, so the image that goes from the sort of photon counter — the silicon photon counter — that then goes through a digital signal processor or image signal processor, that’s normally what happens. And then the image that you see looks all washed out, because if you point the camera at the sun, the post-processing of the photon counting washes things out.”
Future Hardware iterations, like Hardware 5 and Hardware 6, could also integrate better solutions for the sunglare issue, such as neutral density filters or heated lenses, aiming to solve glare more effectively.
Elon Musk
Delaware Supreme Court reinstates Elon Musk’s 2018 Tesla CEO pay package
The unanimous decision criticized the prior total rescission as “improper and inequitable,” arguing that it left Musk uncompensated for six years of transformative leadership at Tesla.
The Delaware Supreme Court has overturned a lower court ruling, reinstating Elon Musk’s 2018 compensation package originally valued at $56 billion but now worth approximately $139 billion due to Tesla’s soaring stock price.
The unanimous decision criticized the prior total rescission as “improper and inequitable,” arguing that it left Musk uncompensated for six years of transformative leadership at Tesla. Musk quickly celebrated the outcome on X, stating that he felt “vindicated.” He also shared his gratitude to TSLA shareholders.
Delaware Supreme Court makes a decision
In a 49-page ruling Friday, the Delaware Supreme Court reversed Chancellor Kathaleen McCormick’s 2024 decision that voided the 2018 package over alleged board conflicts and inadequate shareholder disclosures. The high court acknowledged varying views on liability but agreed rescission was excessive, stating it “leaves Musk uncompensated for his time and efforts over a period of six years.”
The 2018 plan granted Musk options on about 304 million shares upon hitting aggressive milestones, all of which were achieved ahead of time. Shareholders overwhelmingly approved it initially in 2018 and ratified it once again in 2024 after the Delaware lower court struck it down. The case against Musk’s 2018 pay package was filed by plaintiff Richard Tornetta, who held just nine shares when the compensation plan was approved.
A hard-fought victory
As noted in a Reuters report, Tesla’s win avoids a potential $26 billion earnings hit from replacing the award at current prices. Tesla, now Texas-incorporated, had hedged with interim plans, including a November 2025 shareholder-approved package potentially worth $878 billion tied to Robotaxi and Optimus goals and other extremely aggressive operational milestones.
The saga surrounding Elon Musk’s 2018 pay package ultimately damaged Delaware’s corporate appeal, prompting a number of high-profile firms, such as Dropbox, Roblox, Trade Desk, and Coinbase, to follow Tesla’s exodus out of the state. What added more fuel to the issue was the fact that Tornetta’s legal team, following the lower court’s 2024 decision, demanded a fee request of more than $5.1 billion worth of TSLA stock, which was equal to an hourly rate of over $200,000.
Delaware Supreme Court Elon Musk 2018 Pay Package by Simon Alvarez
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Tesla Cybercab tests are going on overdrive with production-ready units
Tesla is ramping its real-world tests of the Cybercab, with multiple sightings of the vehicle being reported across social media this week.
Tesla is ramping its real-world tests of the Cybercab, with multiple sightings of the autonomous two-seater being reported across social media this week. Based on videos of the vehicle that have been shared online, it appears that Cybercab tests are underway across multiple states.
Recent Cybercab sightings
Reports of Cybercab tests have ramped this week, with a vehicle that looked like a production-ready prototype being spotted at Apple’s Visitor Center in California. The vehicle in this sighting was interesting as it was equipped with a steering wheel. The vehicle also featured some changes to the design of its brake lights.
The Cybercab was also filmed testing at the Fremont factory’s test track, which also seemed to involve a vehicle that looked production-ready. This also seemed to be the case for a Cybercab that was spotted in Austin, Texas, which happened to be undergoing real-world tests. Overall, these sightings suggest that Cybercab testing is fully underway, and the vehicle is really moving towards production.
Production design all but finalized?
Recently, a near-production-ready Cybercab was showcased at Tesla’s Santana Row showroom in San Jose. The vehicle was equipped with frameless windows, dual windshield wipers, powered butterfly door struts, an extended front splitter, an updated lightbar, new wheel covers, and a license plate bracket. Interior updates include redesigned dash/door panels, refined seats with center cupholders, updated carpet, and what appeared to be improved legroom.
There seems to be a pretty good chance that the Cybercab’s design has been all but finalized, at least considering Elon Musk’s comments at the 2025 Annual Shareholder Meeting. During the event, Musk confirmed that the vehicle will enter production around April 2026, and its production targets will be quite ambitious.
Tesla aims to combat common Full Self-Driving problem with new patent
Delaware Supreme Court reinstates Elon Musk’s 2018 Tesla CEO pay package
