Tesla Knocks $1,100 Off Price of the Model 3

DETROIT (AP) — Tesla is cutting $1,100 from the base price of its car designed for the mass market, the Model 3.

The electric car company now says on its website that the car starts at $42,900, still a ways from its goal of lowering the base price to $35,000.

Tesla cut 7 percent of its workforce last month to trim costs and reduce the price of the car. CEO Elon Musk says the Model 3 must be competitive with gasoline-fueled cars for the company to succeed.

For $42,900 buyers will get a rear-wheel-drive Model 3 in black with Tesla’s lower-range battery that goes 264 miles per charge.

The price doesn’t include federal and state tax credits. The federal credit is now $3,750, but that expires at the end of the year.

Notice: you are using an outdated browser. Microsoft does not recommend using IE as your default browser. Some features on this website, like video and images, might not work properly. For the best experience, please upgrade your browser.