Tesla Motors that the official price for the all-electric Tesla Model 3 sedan will be $35,000 before incentive.
The Model 3 has long been rumored to cost about this price, and Bloomberg is quoting a Tesla spokesperson who confirmed the starting price.
“We can confirm it’s $35,000 before incentives,” Tesla spokesperson Khobi Brooklyn told Bloomberg. “We haven’t changed our minds.”
Official confirmation from the company echoes what Musk told reporters at an auto show more than a year ago: “When I say $35,000, I’m talking about without any credits.”
With a $35,000 price tag before incentives, the Tesla Model 3 is cheaper than General Motors upcoming Bolt EV, which prices at a suggested retail price of $37,500 before incentives.
Incentives vary widely state by state, but the base incentive is a $7,500 federal income tax credit available to everyone in the country. Bringing the $35,000 sticker price of the Model 3 down by that amount would expand the potential market by roughly 50 percent.
Additional incentives would further knock down the price in more than a dozen states, including an additional $6,000 in Colorado and $2,500 in California, Massachusetts, and Tennessee.
The Model 3 is expected to have a range of about 200 miles per charge and be smaller than the Model S. Tesla is expected to show off the Model 3 at an event at the end of March and begin producing the car by the end of 2017. However, it’s unclear if the company will show off the actual car or if they will only show off images.