Tesla

Tesla's $35,000 Model 3 Will Be Available for Pre-Order on March 31

2 min read
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Tesla's entry-level $35,000 Model 3 electric car will be available for pre-order on March 31, chief executive Elon Musk announced Thursday on Twitter.

The tweets by the billionaire followed a note in the company's earnings release on Wednesday that the Model 3 is on schedule for deliveries in late 2017.

Tesla plans to begin installing production machinery this year.

In his tweets, Musk said consumers could begin preorders next month with a $1,000 deposit.

He also confirmed the rumored $35,000 price tag.

The Model 3 is Tesla's entry-level offering, whereas the Model S and Model X SUV carry hefty price tags.

Musk also announced that the company would not be releasing a "signature" version of the Model 3. Signature versions of the Model S and X were put on sale and came fully loaded with the top features. A signature Model X costs around $130,000.

Tesla hopes the Model 3 will help boost its sale figures and increase the number of its electric vehicles on the road. The company posted positive 2016 guidance on Wednesday, saying it expects to deliver 80,000 to 90,000 new vehicles this year, noting it is aiming for non-GAAP profitability for the year. This was above Wall Street estimates.

Analysts said that Model 3 demand will be high due to its cheaper price, but Tesla will still need to push consumers to take the leap of faith on electric cars.

"We expect demand for that to also be high," ISI Group auto analyst George Galliers told CNBC on Thursday.

"The challenge at the moment for electric cars is really encouraging the public to try them, experience them, realize the benefits and also to get over that misconception around range anxiety," he said. "People think that there's nowhere to charge them. The reality is if you have off-street parking, you can of course charge it at home every night."

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