When Elon Musk unveiled the Tesla Model 3, he said that the base model of the mass-market electric car would cost $35,000. Anyone who has already purchased one knows that the $35,000 base model hasn’t been available as yet. Tesla has been gradually working to reach that target and it’s now one step closer to that with a $1,100 price cut.

Tesla has cut the Model 3 price by $1,100. This means that the starting price of its cheapest model is now $42,900 before incentives. The same price cut applies to more expensive variants of the car as well which include all-wheel drive, rear-wheel drive, and performance models.

A spokesperson for Tesla has said that the price cut is the result of the recent shutdown of the company’s referral program. The price cut means that the cheapest Model 3 now costs $39,150 after accounting for federal tax credit which will be cut in half this July.

Tesla still has a ways to go before it can reach the target unsubsidized price of $35,000 for a base Model 3. It would help the company tap the customer base that has been waiting for the price to come down to this level. It will be easier said than done, though, as Musk himself says that it will be a “super hard grind” to achieve the target unsubsidized price.

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