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Tesla’s $35k Model 3 lives on, even if $39.5k Standard Plus hits ‘sweet spot’ for buyers
Tesla CEO Elon Musk has stated that while the $35,000 Standard Model 3 is currently an off-menu item, the vehicle will continue to be offered as an option for electric car buyers. Addressing the vehicle during the Q1 2019 earnings call, Elon Musk noted that the $35,000 version “is there and will remain there,” though ordering one will require buyers to call Tesla or visit one of its stores.
Despite the extra steps required to order the Model 3 Standard, Elon Musk maintained that customers won’t need to go through an “obstacle course” just to acquire the vehicle. The Tesla CEO also mentioned that so far, orders for the 240-mile Standard Plus variant, which costs $39,500 and comes bundled with Autopilot, have far outnumbered the orders for the Model 3’s base version.
Part of the reason behind the relatively low orders for the $35,000 Model 3 is likely the company’s efforts to push the Standard Plus version, as hinted at by anecdotes from electric car buyers who ordered the base variant as soon as it was available. Based on several accounts from reservation holders who shared their experiences online, Tesla was encouraging buyers of the $35,000 Model 3 to upgrade to the Standard Plus, which cost $37,500 then without Autopilot.
There is no doubt that the Standard Plus Model 3 is Tesla’s current bang-for-your-buck vehicle, combining a very reasonable price with great features and more than decent performance. Elon Musk emphasized this during the first quarter earnings call, stating that “the $39,500 Model 3 just really hit the sweet spot” for electric car buyers, with its 240-mile range, its 0-60 mph time of 5.3 seconds, and its Autopilot features.
Despite this, it is also undeniable that the $35,000 Model 3 is a very compelling vehicle on its own. Tesla might state that the base version of its most affordable electric sedan is getting relatively low orders, but the car is, despite its lack of features and rather modest range, still a very capable EV. At $35,000 before incentives, the Standard Model 3 is pretty much at the same price range of a top-tier Toyota Camry; and it is a car that needs far less maintenance and zero gas. The $35,000 Model 3 could very well be a big opportunity for Tesla, especially when the company fully hits its stride in producing the electric sedan.
Tesla has started shipping the $35,000 Model 3 to customers, though the vehicle is essentially a software-limited Standard Plus model. If Elon Musk’s words during Tesla’s Autonomy Day event are any indication, there will soon be a lot of Standard Plus Model 3s on the road, since the company will be prioritizing the production of shorter-range vehicles that will eventually be used for its upcoming Tesla Network Robotaxi service.
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Armored Tesla Cybertruck “War Machine” debuts at Defense Expo 2025
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Tesla Megapacks chosen for 548 MWh energy storage project in Japan
Tesla plans to supply over 100 Megapack units to support a large stationary storage project in Japan, making it one of the country’s largest energy storage facilities.
Tesla’s Megapack grid-scale batteries have been selected to back an energy storage project in Japan, coming as the latest of the company’s continued deployment of the hardware.
As detailed in a report from Nikkei this week, Tesla plans to supply 142 Megapack units to support a 548 MWh storage project in Japan, set to become one of the country’s largest energy storage facilities. The project is being overseen by financial firm Orix, and it will be located at a facility Maibara in central Japan’s Shiga prefecture, and it aims to come online in early 2027.
The deal is just the latest of several Megapack deployments over the past few years, as the company continues to ramp production of the units. Tesla currently produces the Megapack at a facility in Lathrop, California, though the company also recently completed construction on its second so-called “Megafactory” in Shanghai China and is expected to begin production in the coming weeks.
READ MORE ON TESLA MEGAPACKS: Tesla Megapacks help power battery supplier Panasonic’s Kyoto test site
Tesla’s production of the Megapack has been ramping up at the Lathrop facility since initially opening in 2022, and both this site and the Shanghai Megafactory are aiming to eventually reach a volume production of 10,000 Megapack units per year. The company surpassed its 10,000th Megapack unit produced at Lathrop in November.
During Tesla’s Q4 earnings call last week, CEO Elon Musk also said that the company is looking to construct a third Megafactory, though he did not disclose where.
Last year, Tesla Energy also had record deployments of its Megapack and Powerwall home batteries with a total of 31.4 GWh of energy products deployed for a 114-percent increase from 2023.
Other recently deployed or announced Megapack projects include a massive 600 MW/1,600 MWh facility in Melbourne, a 75 MW/300 MWh energy storage site in Belgium, and a 228 MW/912 MWh storage project in Chile, along with many others still.
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
Tesla highlights the Megapack site replacing Hawaii’s last coal plant
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Elon Musk responds to Ontario canceling $100M Starlink deal amid tariff drama
Ontario Premier Doug Ford said, opens new tab on February 3 that he was “ripping up” his province’s CA$100 million agreement with Starlink in response to the U.S. imposing tariffs on Canadian goods.
Elon Musk company SpaceX is set to lose a $100 million deal with the Canadian province of Ontario following a response to the Trump administration’s decision to apply 25 percent tariffs to the country.
Starlink, a satellite-based internet service launched by the Musk entity SpaceX, will lose a $100 million deal it had with Ontario, Premier Doug Ford announced today.
Starting today and until U.S. tariffs are removed, Ontario is banning American companies from provincial contracts.
Every year, the Ontario government and its agencies spend $30 billion on procurement, alongside our $200 billion plan to build Ontario. U.S.-based businesses will…
— Doug Ford (@fordnation) February 3, 2025
Ford said on X today that Ontario is banning American companies from provincial contracts:
“We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hellbent on destroying our economy. Canada didn’t start this fight with the U.S., but you better believe we’re ready to win it.”
It is a blow to the citizens of the province more than anything, as the Starlink internet constellation has provided people in rural areas across the globe stable and reliable access for several years.
Musk responded in simple terms, stating, “Oh well.”
Oh well https://t.co/1jpMu55T6s
— Elon Musk (@elonmusk) February 3, 2025
It seems Musk is less than enthused about the fact that Starlink is being eliminated from the province, but it does not seem like all that big of a blow either.
As previously mentioned, this impacts citizens more than Starlink itself, which has established itself as a main player in reliable internet access. Starlink has signed several contracts with various airlines and maritime companies.
It is also expanding to new territories across the globe on an almost daily basis.
With Mexico already working to avoid the tariff situation with the United States, it will be interesting to see if Canada does the same.
The two have shared a pleasant relationship, but President Trump is putting his foot down in terms of what comes across the border, which could impact Americans in the short term.
Armored Tesla Cybertruck “War Machine” debuts at Defense Expo 2025
Tesla Megapacks chosen for 548 MWh energy storage project in Japan
