Tesla unveiled a lower cost version of its Model 3 sedan on Friday, CEO Elon Musk announced on Twitter, though it’s not quite as cheap as buyers may be hoping.
The sticker price for the vehicle is $45,000, according to the company’s website, though the electric automaker alleges that when incentives and gas savings are factored in the estimated cost is actually $31,200.
Shares of Tesla were bouncing around during Friday's session.
The car has an estimated range of 260 miles, a single motor and rear wheel drive.
Consumers can begin ordering the new vehicle online and it will be available for delivery in about six to 10 weeks, according to Tesla.
While the automaker has battled production problems with Model 3 vehicles, in the third quarter Tesla said it produced 80,142 vehicles, of which 53,239 were Model 3 sedans. Its Model 3 deliveries, totaling 55,840, were slightly above expectations.
The Model 3 was intended as a way to bring the luxury electric vehicle to the average consumer. Musk has promised a version of the Model 3 with a base price of $35,000, which has yet to be realized.
Musk said on Twitter in May that if the company shipped the $35,000 version right away, Tesla would “lose money [and] die.” At the time he estimated the company would need three to six months after it reached a production rate of 5,000 sedans per week – which it realized in the second quarter – before it began work on that lower cost version.
Meanwhile, buyers will begin to lose a $7,500 tax credit at the start of next year, after Tesla hit a specified sales threshold over the summer.