Tesla drops Model 3 base price; still $8,000 above $35,000 target

The company discounted the Model 3 by more than $1,000 across the board, including the mid- and long-range variants.

"Tesla has inched a bit closer to the Model 3's $35,000 promised base price.

The company's cheapest model is now available for $42,900, representing an $1,100 drop from the previous entry point for the midrange battery. The same discount appears to have been applied across the board, including the long-range variants.

The latest quarterly report suggests Tesla is making progress in lowering production and component costs for the Model 3, slashing man-hours required to build each unit. It is unclear if the company has made enough progress to begin selling the $35,000 base model at a profit, however.

"We're doing everything we can to get there [$35,000]," Musk wrote on Twitter after the latest price change. "It's a super hard grind."

The Model 3 Long Range Dual Motor now starts at $49,000, while the Long Range Dual Motor Performance fetches $60,900.

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