Tesla has lowered the price of the Model 3 to $42,900 — or $35,000 after tax credits — CEO Elon Musk announced early Wednesday.
It’s still not the base-model price point originally announced by Tesla when it first unveiled the Model 3, but is a step in that direction. The standard battery is still four to six months away, according to the company’s website.
Read More:Tesla launched a new store on Amazon where it’s selling iPhone cases, hoodies, and mugs “We’re doing everything we can to get there,” Musk tweeted about the $35,000 base price without credits. “It’s a super hard grind.”
In January, the tax credit available to Tesla buyers was slashed in half, from $7,500 to $3,750, after it passed the program’s threshold of 200,000 vehicles sold.
Earlier in February, Tesla announced that it had launched the Model 3 in China, where it is in the process of building a second Gigafactory. It also said a cheaper version of the Model 3 was on the way for Chinese buyers.
Shares of Tesla sank about 0.6% in early trading Wednesday after closing up 2.7% on Tuesday.