Electric car producer Tesla has ditched the idea of selling its first ‘mass-market’ car Model 3 for $35,000 and instead will sell its upgraded version for $78,000.
The new Model 3 was announced by CEO Elon Musk on Twitter. He compared the price tag to that of the BMW M3, however the German car has a starting manufacturer’s suggested retail price of about $66,500, Bloomberg noted.
The initial price for Model 3 was $35,000, when deliveries started in July. However, customers wanted a better battery, which pushed its price to $44,000.
“The idea that it’s supposed to be a car for everyone is kind of laughable. Anyone who wanted a base model may have to wait years out,” Ivan Drury, senior manager of industry analysis at Edmunds.com, told Bloomberg.
Tesla has recently faced production problems, which have caused a sell-off in its stock. The company burned through more than $1 billion of cash in the first three months of the year and may need $10 billion in additional capital by 2020 to survive, Goldman Sachs wrote last week.
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