Elon Musk’s Mysterious Tweet Results in $35,000 Tesla Model 3

Elon Musk teased a major announcement this week, and consumers were not disappointed. Shareholders, however, were. | Source: REUTERS / Chris Helgren

Tesla’s big news event for today was dominated by the official unveiling of the long-awaited $35,000 Model 3. Excitement over the new low-cost sedan was sapped, however, after Elon Musk delivered disappointing news about Tesla’s profitability prospects.

Tesla Unveils $35,000 Model 3

The Model 3’s new $35,000 version will have a 220-mile battery pack range. New buyers will only be able to make purchases online.

Tesla’s new $35,000 Model 3 sedan offers consumers a bare-bones entry into the EV market.

Here’s a look at the bare bones Standard Model 3 specs. There is a range of options available, and they’re noted on the company’s website.

Musk had hinted about the announcement in a cryptic tweet Wednesday. Tesla had suspended all orders on its website and redirected users to a page teasing the mystery announcement.

Elon Musk Cagey on $35,000 Model 3 Profitability

It wasn’t long before critics started hurling questions about this big reveal. Musk was off-putting during the announcement call, which didn’t sit well with some listeners.

The reveal is likely not enough to mitigate the other issues the EV maker is dealing with. Perhaps this was just a way to get investors’ minds off of the looming debt payment coming due on Friday.

Musk said Tesla is not expecting to be profitable in the first quarter. He added that the firm would “likely” turn a profit in Q2.

“Given that there is a lot happening in Q1, and we are taking a lot of one time charges, there are a lot of challenges getting cars to China and Europe, we do not expect to be profitable. We do think that profitability in Q2 is likely.”

Tesla Stock Falls After Hours

On that news, Tesla’s stock price slid in after-hours trading. As of the time of writing, TSLA shares were down to $308 after closing at $319.88 on Thursday for a decline of around 3.65 percent.

TSLA shares fell nearly 4 percent in after-hours trading. | Source: Google Finance

Last modified: September 23, 2020 12:27 PM

Tedra DeSue: If you can buy it, trade it, invest in it, or sell it, I write about it. For more than 20 years, I've covered all things finance. Based in Atlanta, Ga., I threw myself into covering the crypto space with a keen understanding that it would be an industry disruptor. I'm in constant search for the real Satoshi Nakamoto!