To make the lower price "financially sustainable", the firm said it was shifting to an online-only sales model.
Sadly, this probably doesn't mean that we're about to hear that Elon's discovered aliens, because the announcement relates to his electric vehicle company instead. "We're incredibly excited to finally achieve this goal, it's been insanely hard". To help ease this transition, the EV-company is letting users test out a Tesla for seven-days or 1,000 miles (roughly, 1,600km) before they decide if they want to keep it or not.
A limited number will stay open as customer information centres, galleries or showcases.
Musk also underscored that the Model 3 will offer the same safety level as other Model 3 versions, with all the equipment required for Full Self Driving-a term that the company has now revived-in the future. The next step up is the existing Mid Range Model 3 with a 264-mile range and a $40,000 price tag.
The rear-wheel-drive Model 3 Long Range will soon have an estimated 325 miles of range, up from 310 miles that will remain the cap for the dual-motor AWD edition.
The cheapest Model 3 that could be ordered before Thursday started at $42,900. Tesla shares are now about $40 below the $359.87 conversion price.
"Given that there was just a lot happening in Q1, and we're taking a lot of one-time charges and there are a lot of challenges getting cars to China and Europe, we do not expect to be profitable in Q1", Musk said on a call with reporters.
But that correction was not enough for a federal judge, who gave Musk two weeks to explain why he should be spared from being held in contempt for violating the agreement with the SEC.
The updates will add roughly 5 percent peak power to all Model 3 vehicles, Tesla says.
It makes sense here that Tesla is looking to boost demand of its Model 3.
In the US, the Model 3 dropped down to the long-awaited $35,000 Dollars, which has been a long-term goal for the electric vehicle manufacturer.
The development came in response to Musk's tweet on February 19 that "Tesla made 0 cars in 2011, but will make around 500k in 2019". Across all three of Tesla's cars - the Model 3, Model S, and Model X - there'll now be two Autopilot packages available.
He declined to say how many people will lose their jobs as a result of the move but said making the change was necessary as Tesla works toward its bigger goal of making electric cars mainstream. Interested buyers in North America can already purchase a Tesla straight from your phone in roughly one minute. With the highest consumer satisfaction score of any auto on the road, we are confident you will want to keep your Model 3.
Tesla representatives estimate that moving to online-only sales will save the company upwards of six percent in costs and as such, it's passing that savings down to the customer.