Tesla drives down price for Model 3 to $35,000

Tesla on Thursday said it would start accepting orders for its Model 3 in the US at a price of $35,000 (£26,400), finally delivering on a promise it made more than two years ago.

To make the lower price “financially sustainable”, the firm said it was shifting to an online-only sales model.

The electric car company announced the Model 3 car in 2016 as an alternative to its luxury offerings.

However, it did not initially offer the car at the $35,000 price promised.

As recently as September, the average selling price was more than $50,000.

However, the firm has shrunk the battery and reduced costs in other ways to hit the lower price and still protect profit margins.

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The $35,000 car car has a range of 220 miles, a top speed of 130 mph and 0-60mph acceleration of 5.6 seconds.

Tesla’s website said cars ordered now would be ready for delivery in two to four weeks. The lower-priced model would be available for order in Europe and China in three to six months, it said.

The average cost of a new car in the US was more than $36,000 last year.