Man, Musk is a genius...at using government subsidies to line his pockets.
http://www.wired.com/2016/03/sorry-dont-expect-tesla-model-3-cost-30k/
There are several reasons that price is almost certainly a fantasy. First, that $35,000 base model probably won?t have the fun options people want. Based upon how Tesla has priced its Model S sedans and Model X SUVs, crowd-pleasing features like all-wheel drive, a larger battery for more range, and that really cool ?autopilot? feature will add thousands to the sticker price. The base price of a Model S is 70 grand. Tesla won?t reveal the average sale price, but Morgan Stanley pegged it at $105,000 in 2014.
But even if you?re happy with the base model, there?s a bigger problem. The sub-$30,000 price point is based on a $7,500 federal tax credit (some states offer additional incentives, but nothing nearly so generous). That discount is designed to foster adoption by subsidizing the cost of what remains a fairly expensive technology without dinging automakers. Everyone from General Motors to Nissan relies upon tax credits to help move cars by keeping the cost of cars like the Model 3, the Chevrolet Bolt, and the Nissan Leaf below $30,000, a number consumers find palatable.
That federal tax credit won?t be around forever. It was designed to get automakers started, and applies to the first 200,000 electric vehicles a manufacturer sells in the US. Once an automaker hits that benchmark, the credit phases out incrementally over the following 12 months.
That $7,500 tax credit is ?incredibly important,? especially at the Model 3 price point, says Rebecca Lindland, a senior analyst at Kelley Blue Book. ?One could argue they sort of wasted their credits on the very wealthy, people who didn?t need it,? she says.
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