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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.

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Tesla assembly line

Tesla assembly line

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.

New car pricing by Salim Morsy

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.

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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

Elon Musk

Elon Musk hits back at former Tesla employee who disagrees with pay package

Tesla is worth more than all other automotive companies combined. Which of those CEOs would you like to run Tesla?

It won’t be me.

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elon musk speaking
Credit: TED

Elon Musk gave a tough response to a former Tesla employee who spoke out on X about the structure of the CEO’s pay package, arguing that it is an overpayment and would not generate enough shareholder value.

Without a doubt, the biggest issue on the bill at this year’s Tesla Shareholder Meeting in November is that of the pay package that was proposed to CEO Elon Musk.

As the Shareholder Meeting approaches, Tesla is urging those investors to vote in support of Musk’s pay package. So far, the community has been overwhelmingly supportive of giving Musk his massive payday, which could give him $1 trillion in additional holdings if he completes each of the outlined performance tranches.

However, there are a handful of institutional and individual shareholders who have pushed back against the package, either because of its value or because they feel it does not benefit shareholders enough.

Last week, we reported that Institutional Shareholder Services (ISS) advised voting against Tesla’s pay package for Musk. The firm said the payday would give Musk”extraordinarily high pay opportunities over the next ten years,” and it would “reduce the board’s ability to meaningfully adjust future pay levels.”

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Tesla CEO Elon Musk’s $1 trillion pay package hits first adversity from proxy firm

Additionally, it called the value of the pay package “astronomical.”

On Saturday, a former Tesla employee said on X that Tesla’s proposed pay package for Musk would “barely beat inflation and it would underperform the S&P 500 considerably.” Additionally, he said:

“Sorry, Tesla, some of us (and supposedly, ISS too) simply don’t think that underperforming the S&P 500 this much is worth paying somebody 20 billion dollars worth of company value.

As a fan, I love Tesla, I want it to succeed. As a shareholder, I don’t want Tesla to over-pay for its CEO I strongly believe that the 2025 pay package proposal would over-pay for its CEO, and that other competent CEOs could grow Tesla just as much with way less political drama and cost investors much less that this proposal.”

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Musk responded bluntly:

“Tesla is worth more than all other automotive companies combined. Which of those CEOs would you like to run Tesla? It won’t be me.”

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It seems the worry about Musk’s potential involvement in politics still looms to many, based on the responses to Musk’s post, which frequently mention that as a downside of his last year as Tesla CEO. However, Tesla’s Board confronted that directly.

In its proxy filing after announcing the pay package, Tesla said that it had three commitments, one of which was that the company would “receive assurances that Musk’s involvement with the political sphere would wind down in a timely manner.”

Tesla Board takes firm stance on Elon Musk’s political involvement in pay package proxy

Musk’s previous pay package was approved by shareholders twice, but it never made it to the CEO because of a lawsuit with the Delaware Chancery Court brought forth by a small-time shareholder.

The response from Musk does seem to show that if this time is no different, he will inevitably step down as CEO in the coming years.

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Tesla rivals are lagging behind alarmingly in this crucial EV necessity

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tesla supercharger
Credit: Tesla

Tesla rivals are lagging behind the company in alarming fashion in this crucial EV necessity: charging.

Tesla has had a long-standing reputation for having the most expansive electric vehicle charging infrastructure, and even as other companies have launched their own as part of the vehicle manufacturing, nobody seems to keep pace with the EV leader.

A report from Paren exhibited this trend in Q3, showing that Tesla overwhelmingly dominated EV charging stall installations over the past three months. This data is based on U.S. installations, where Tesla has long held a dominating position as the leader in overall electric vehicle sales for many years.

In Q3, Tesla installed 1,820 new chargers in the United States, bringing its total presence to 34,328, an all-time market share of 53.2 percent of all charging stalls in the country.

What’s alarming is the fact that all other networks — ChargePoint, Red E, Electrify America, EV Connect, EVgo, Ionna, Blink, Pilot Flying J, and Rivian Adventure — only installed 841 chargers collectively in Q3. That is nearly 1,000 units behind Tesla, despite there being nine companies contributing as competitors.

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These nine networks have 10,055 stalls in total, the data from Paren shows, accounting for 15.6 percent of the chargers in the United States.

EV charging is such a crucial part of the ownership experience, and also a part of the ongoing expansion of EV adoption in the United States.

As more people buy EVs and they become a more prominent form of passenger transportation, more chargers are needed. Many owners charge at home, but charging options in public are important to have for traveling, commuting, and for those who do not have access to residential charging.

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With Tesla opening its Supercharger Network to the majority of EV brands over the past two years, things have gotten better.

It has been alarming to see so many companies involved in EV infrastructure essentially accept the gap between Tesla and themselves; not a single company has tried to up its pace to catch up to what Tesla has.

When it comes down to it, as long as there is charging, the manufacturer does not truly matter.

However, it would be nice to see Tesla have some competition in the space, but with its domination and head start in the infrastructure division, it seems the company will have this competitive advantage for years to come.

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Tesla updates fans on its plans for the Roadster

Earlier in 2025, Musk said Tesla would host the “most epic demo” for the Roadster in late 2025. We’re in Q4, so time is running out, but we finally got the update we’ve been waiting for from von Holzhausen on the Ride the Lightning podcast yesterday.

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Tesla Roadster and Semi at Tesla Battery Day 2020 Credit: @GuyTesla | Twitter

Tesla has finally updated fans on its plans for the Roadster after stating earlier this year it would host the “most epic demo,” showcasing the vehicle’s capabilities.

The Roadster is amongst the most highly anticipated automotive releases in the entire industry, and was set for release in 2020 initially. However, Tesla got so caught up with scaling up the Model Y and focusing on autonomy that the project took a figurative backseat.

Elon Musk teases Tesla’s “most epic demo” by end of year

In the years since its planned release, we have not seen much of the vehicle. Company executives like Elon Musk and Chief Designer Franz von Holzhausen have hinted at things about it and teased us with potential release dates, but each time, it has been delayed.

Last year, Tesla planned to show something, but Musk saw what improvements had been made from the original design unveiled back in 2017 and figured the company could go a step further, only delaying the project another year.

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But what’s another year, right?

Earlier in 2025, Musk said Tesla would host the “most epic demo” for the Roadster in late 2025. We’re in Q4, so time is running out, but we finally got the update we’ve been waiting for from von Holzhausen on the Ride the Lightning podcast yesterday.

Confirming the demo was still on for this year, he also teased some new features that the Roadster will have, like new paint options.

Von Holzhausen said:

“I’m excited to showcase the Roadster for a lot of different reasons. The wait will be worth it.”

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Additionally, he said the capabilities of the Roadster are truly something, and they have gotten the vehicle to a point that it seems to test the “limits of physics.” Franz added that Tesla has “really gotten to a point where we are going to be achieving that standard that we set out.”

Obviously, the Roadster is not a major contributor to Tesla’s mission or to its future, which mostly leans on artificial intelligence and Robotaxi or autonomy. However, it is still a product that Tesla needs to offer, as many have put massive $250,000 downpayments on the vehicle in an attempt to purchase one.

Tesla has not yet announced a date for its demo of the Roadster, but based on Franz’s interview, it seems the company is still on track to hold that by the end of the year.

The full episode with Franz von Holzhausen on the Ride the Lightning podcast is available here.

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