Tesla Model 3 Price Is $35000, Drops To $30000 After Rebates

The company in the past has overestimated its delivery projections, and demand for electric cars may be sluggish if gas stays stubbornly cheap.

The vehicle, called the Model 3, will be unveiled on March 31, Tesla said in a letter to shareholders published February 10. Wednesday reported a fourth-quarter loss that widened from past year, hurt largely by higher operating costs which offset an increase in revenues.

The electric-car manufacturer posted an adjusted loss per share of $0.87, and revenues of $1.75 billion. He noted that Model S sedan sales rose in 2015 even as luxury competitors like the Audi A7 and Lexus LS fell.

Tesla had been burning cash a rate of more than $400 million a quarter for more than a year as its spending ramped up and deliveries of the Model X hadn’t begun.

While the announcement specifically allude to the car’s MSRP of $35,000, Tesla CEO Elon Musk and his team have been dead focused on bringing the Model 3 to market with that sticker on it. The company plans to start production and deliveries of Model 3 in late 2017.

David Muller is the automotive and business reporter for MLive Media Group in Detroit. The company said it plans to deliver between 80,000 and 90,000 vehicles this year.

One thing everyone has been wondering about the new Tesla Model 3 is the price and now Tesla has revealed how much their new sedan will retail for. We suspect the Model 3 will impress though will be met with questions of cost, launch timing, and margins. Musk is expected to give an update on how many cars Tesla expects to deliver in 2016 during Wednesday’s earnings report.

A Tesla logo adorns a “Model S” auto in the dealership in Berlin, Germany, November 18, 2015.

The California company led by Internet entrepreneur Elon Musk said it sold 25,202 Model S vehicles in the year, up from 16,689 in 2014.

Cash reserves of Tesla declined to $1.2 billion as of December 31 from $1.9 billion a year ago, despite a sale of shares last summer.