FILE - In this March 9, 2013, file photo. (AP Photo/Jack Plunkett, File)

Elon Musk: Low-priced Tesla coming to the U.S.

Elon Musk says Tesla will soon start selling its $35,000 Model 3

Three years after he promised to sell an all-electric Model 3 mass-market sedan for $35,000 before incentives, Elon Musk is finally coming through. The Tesla Inc. chief executive announced Thursday that a low-priced, range version will soon be available in the U.S.

Musk also announced that the company’s cars will be sold online only. Retail stores will be converted into showrooms and information centers, he said. He didn’t say how many stores will close, or whether the shift will affect the company’s workforce.

Tesla promised a $35,000 Model 3 in March of 2016 and began taking refundable $1,000 deposits.

“We do not expect to be profitable in the first quarter,” Musk said during a conference call Thursday, because of “special charges” and the costs of sending cars to China and Europe.

READ MORE: Millennial Money: Don’t freak out about your emergency fund

There’s a lot going on,” he said. A profit in the second quarter is “likely,” he said.

Musk used his Twitter account Tuesday night to tease Thursday’s announcement. He continued teasing Wednesday, offering no details on the mystery. Between the stock market’s opening on Wednesday to the close on Thursday, Tesla stock gained more than $18 a share, or about 6 percent, finishing at $319.88.

The Model 3 news comes on the heels of a contempt charge filed against Musk on Monday by the U.S. Securities and Exchange Commission. The SEC claims Musk violated the fraud settlement reached with the agency last September by tweeting false information about the number of cars Tesla plans to produce this year, and by sending the tweet without getting corporate permission first, as the settlement requires.

READ MORE: Premiers call for end to tariffs, reboot on Canada-U.S. relationship

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A second wave of COVID-19 is probable, if history tells us anything

B.C.’s top doctor says that what health officials have learned this round will guide response in future

Water recovery team stands down search for missing man in Stellako River

Jason Bouchard was in a boat with a friend that overturned in the river May 16

COVID-19: Increased federal funding for off-reserve Indigenous services welcomed news in north

Funding to benefit organizations such as friendship centres during pandemic

COVID-19: PG Community Foundation to disperse community support funds

$197,630 in funding announced by the Prince George Community Foundation

CGL workforce will gradually increase to 650 workers by end of May

The pipeline company provided a project update on May 21.

LIVE: Procession to honour Snowbirds Capt. Jennifer Casey comes to Halifax

Snowbirds service member died in a crash in Kamloops one week ago

One man dead after standoff with Chilliwack RCMP

The Independent Investigations Office of B.C. is investigating the RCMP’s role in the death

B.C. employers worry about safety, cash flow, second wave in COVID-19 restart

A survey found 75 per cent of businesses worry about attracting customers

Ex-BC Greens leader Andrew Weaver says province came close to early election

Disagreement centred on the LNG Canada project in northern B.C.

Canada’s NHL teams offer options to season-ticket holders

Canadian teams are offering refunds, but also are pushing a number of incentives to let them keep the money

Introducing the West Coast Traveller: A voyage of the mind

Top armchair travel content for Alaska, Yukon, BC, Alberta, Washington, Oregon and California!

B.C. premier says lessons to learn from past racism during response to pandemic

B.C. formally apologized in the legislature chamber in 2008 for its role in the Komagata Maru tragedy

Snowbirds to remain at Kamloops Airport indefinitely after fatal crash

small contingent of the Snowbirds team is staying in Kamloops, acting as stewards of the jets

Oak Bay man stumbles upon eagle hunting seal, grabs camera just in time

The eagle did ‘a perfect butterfly stroke to shore’ with its prey, photographer says

Most Read