Tesla cuts Model 3 prices as it shifts to online-only business model

The price reduction aims to bring the EV into direct competition with traditional combustion-engine family cars

Tesla Model 3

Tesla has announced it is to start selling the Model 3 at a reduced price of $35,000 (£26,400) as it shifts to an online-only business model.

Delivering on a promise it made more than two years ago, the price reduction aims to bring it into direct competition with traditional combustion-engine family cars.

The electric vehicle (EV) firm says its plans to close showrooms will help cut costs by about 5% – it will now switch to a system of online orders and says test drives will not be needed because customers can return a car within seven days or after driving 1,000 miles and still get a full refund.

As recently as September, the average selling price of the Model 3 exceeded $50,000 (£37,750).

The brand said it is not certain how many stores would close or how many people will lose their jobs but it currently has 378 stores and service locations worldwide.

Cars ordered now could be ready for delivery in the US in as early as two to four weeks’ time and the lower-priced model is expected to be available for order in Europe and China in around three to six months’ time.

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