The most affordable Model 3 now starts at $42,900 before incentives, the result of the most recent $1,100 price cut.
In a reply to a Twitter user asking about when Tesla would drop the Model 3 base price to $35,000, without credits, Musk said, "We're doing everything we can to get there.More news: Eden Hazard closer to Real Madrid move after ‘decision’ taken on future
The latest quarterly report suggests Tesla is making progress in lowering production and component costs for the Model 3, slashing man-hours required to build each unit.
Reminded by a Twitter follower that the promise was for a $35,000 vehicle without the fancy accounting, Musk replied: "We're doing everything we can to get there". CEO Elon Musk says the Model 3 must be competitive with gasoline-fueled cars for the company to succeed. "It's a super hard grind".
The billionaire in the past few months has been pushing for cost-cutting initiatives, like cutting jobs and ending a customer referral program.More news: Warren Listed as 'American Indian' on Texas Bar Card
Earlier this year Tesla cut the prices of all models by $2,000, citing the upcoming demise of the $7,500 federal tax credit.
"Getting those costs down...is what allows us to lower price and become financially sustainable and achieve goal of environmental sustainability", Musk said.
The referral program that ended at the beginning of February gave new buyers six months of free charging and prizes for existing owners such as launching personal photos into deep space or invites to a Tesla event.More news: Apex Legends had over 2.5 million players in its first day