.Over the weekend, Tesla CEO Elon Musk took to Twitter and announced a new powerful version of the Model 3. The version according to Musk will cost $78,000 and will be "quicker & with better handling.
The last line of Musk's tweet made us chuckle since the current Model 3 warranty doesn't permit racing and autocross.
Driving over uneven, rough, damaged or hazardous surfaces, including but not limited to, curbs, potholes, unfinished roads, debris, or other obstacles, or in competition, racing or autocross or for any other purposes for which the vehicle is not designed.
Nevertheless, it has brought up questions as to where the $35,000 Model 3 is. For a number of buyers who plopped down the $1,000 deposit, this is the model they are waiting for. Musk gave a roundabout answer to where the low-priced Model 3 is.
There is some truth to Musk's madness. Tesla is burning through cash like it is going out of style. According to Bloomberg, the company used up more than a billion in the first quarter. One way Tesla raises money is rolling out their most expensive variants of the Model S, X, and 3. Once they have enough cash, they will begin production of less expensive models.
But the Model 3 has proven to be very problematic for Tesla. Various delays and production issues have caused Tesla to push back production targets for the Model 3 again and again. Tesla is aiming to produce 5,000 Model 3s a week by the end of the second quarter.
“The idea that it’s supposed to be a car for everyone is kind of laughable. Anyone who wanted a base model may have to wait years out,” said Ivan Drury, senior manager of industry analysis at Edmunds.com.
Source: Bloomberg (Subscription Required)