Tesla Model 3 AWD Performance Arriving First so Tesla Doesn't Lose Money
Like the standard Tesla Model 3, the more expensive all-wheel-drive model will arrive first.
With Model 3 production finally improving and customers getting their cars, Tesla recently announced a $78,000 performance version of the all-electric sedan. Now, CEO Elon Musk has confirmed on Twitter that the Tesla Model 3 AWD Performance will go to production before the standard AWD model so that the company doesn’t lose money. It’s a similar strategy that was used for initial production, with only the long-range model being offered.
SEE ALSO: Tesla Unveils $78K Performance Version of Model 3
That means those that are interested in purchasing the all-wheel-drive Model 3 will have to shell out quite a bit of cash, unless they are willing to wait for the non-Performance version. And sadly, the $35,000 entry-level Model 3 may not arrive until next year now, as Tesla continues focusing on selling higher-priced variants first while improving production.
Yes, AWD P first and then AWD. Production costs are always high when line first gets going, so we have to sell higher price versions first or each car will have very negative margins. As production efficiency rises, we can make lower cost versions & not lose money.
— Elon Musk (@elonmusk) May 29, 2018
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Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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