TeslaModel 3

Tesla Model 3: Mid Range 260mi model launched before tax credit cut

A new Mid Range 260mi (418km) Tesla Model 3 model has been added to the range. Cars ordered right now will qualify for the full US$7,500 federal tax credit.

The new model has an EPA estimated range of 260mi (418km), a top speed of 125mph (201km/h), and a 0-60mph time of 5.6s.

It is retailing for US$46,000 (although it was listed at US$45,000) for the first week. Tesla is estimating deliveries within 6-10 weeks. So cars order right now will qualify for the full federal income tax credit of US$7,500.

Tesla delivered from January 1, 2019 will only get a US$3,750 credit, and those delivered after July 1, 2019 only receive a US$1,875 credit. From the beginning of 2020 Tesla cars aren’t eligible for federal tax credits.

The company is probably looking to boost its profits for the fourth quarter (it posted a profit of over US$300 million in the third quarter on the back of strong Model 3 sales) before the tax credit comes to bite it.

The promised US$35,000 model has yet to be built, because it would cut into the company’s margins as it seeks to stay liquid without having to raise more money.