New York Post

Say watt, Tesla?

$78K Model 3 first, then $35K car

- By NICOLAS VEGA With Reuters nvega@nypost.com

The working man can wait.

Tesla Chief Executive Elon Musk said his money-losing electric-car maker will switch to producing a souped-up, $78,000 version of the Model 3 — and put the mass-market $35,000 version of the sedan on hold for up to six months.

The struggling automaker needed to make the switch to bring in more revenue so it could survive, Musk said in a tweet Sunday night.

“With production, 1st you need achieve target rate & then smooth out flow to achieve target cost,” Musk wrote. “Shipping min cost Model 3 right away wd cause Tesla to lose money & die. Need 3 to 6 months after 5k/ wk to ship $35k Tesla & live.”

The news seemed to excite investors — and sent Tesla shares up 2.8 percent, to $284.49.

The fully loaded Model 3 will go from zero to 60 mph in 3.5 seconds — more than a half-second sooner than the basic Model 3, Musk announced Sunday on Twitter.

The upgraded, all-wheel drive version will have a top speed of 155 mph, versus 140 mph for the basic version, while maintainin­g the Model 3’s 310-mile range.

Musk, whose refusal to answer questions from some analysts on a call earlier this month tanked Tesla shares, said Sunday the company had to focus on delivering the higher-priced Model 3 cars first, or it would “die.”

The company, which says it’s undergoing a “thorough reorganiza­tion” to contend with production problems, senior staff departures and recent crashes involving its electric cars, is striving to reach a production rate of 5,000 cars per week.

Musk compared the price of the fully loaded Model 3 to that of the BMW M3, but wrote that his car is “15% quicker & with better handling” and added that it will “beat anything in its class on the track.”

A BMW M3 starts at $66,500 while Tesla’s own Model S starts at $74,500.

Separately, Consumer Reports on Monday stopped short of recommendi­ng Tesla’s Model 3 sedan — criticizin­g the car for its braking.

The on-again, off-again, on-again Model 3 is … off again. Now, Tesla is delaying the $35,000 version and building only $78,000 ones.

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