Tesla fans have long been holding out hope for the promised $35,000 base variant of the Model 3 and the wait for them ends now. The company has reduced the price of its mass-market electric car to $35,000. It has made a significant change to the way it sells cars as well.

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Tesla offered only the long-range variant of the Model 3 when the car entered into production back in July 2017 and it cost $56,000. Prior to the price cut the cheapest available version started at more than $40,000. The company will now be selling the base version of the Model 3 for $35,000. It will have a range of 220 miles with a top speed of 130 miles per hour. It can do 0 to 60 miles per hour in 5.6 seconds.

CEO Elon Musk also announced that there will be a new version of the car called the Model 3 Standard Range Plus. It starts at $37,000 and has a range of 240 miles in addition to an upgraded interior and slightly faster speed. Tesla is trimming expenses elsewhere to allow for this price cut. It’s now moving its sales process almost entirely online by closing most of its stores. A few stores will be kept as “galleries” and information centers but most of the retail locations will be shut down.

This will obviously result in job cuts to which Musk’s response was “I wish there was some other way to do it,” adding that “It’s a binary choice: a $35,000 car and have fewer people, or not have a $35,000 car.”

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