FILE - In this March 9, 2013, file photo. (AP Photo/Jack Plunkett, File)

Elon Musk: Low-priced Tesla coming to the U.S.

Elon Musk says Tesla will soon start selling its $35,000 Model 3

Three years after he promised to sell an all-electric Model 3 mass-market sedan for $35,000 before incentives, Elon Musk is finally coming through. The Tesla Inc. chief executive announced Thursday that a low-priced, range version will soon be available in the U.S.

Musk also announced that the company’s cars will be sold online only. Retail stores will be converted into showrooms and information centers, he said. He didn’t say how many stores will close, or whether the shift will affect the company’s workforce.

Tesla promised a $35,000 Model 3 in March of 2016 and began taking refundable $1,000 deposits.

“We do not expect to be profitable in the first quarter,” Musk said during a conference call Thursday, because of “special charges” and the costs of sending cars to China and Europe.

READ MORE: Millennial Money: Don’t freak out about your emergency fund

There’s a lot going on,” he said. A profit in the second quarter is “likely,” he said.

Musk used his Twitter account Tuesday night to tease Thursday’s announcement. He continued teasing Wednesday, offering no details on the mystery. Between the stock market’s opening on Wednesday to the close on Thursday, Tesla stock gained more than $18 a share, or about 6 percent, finishing at $319.88.

The Model 3 news comes on the heels of a contempt charge filed against Musk on Monday by the U.S. Securities and Exchange Commission. The SEC claims Musk violated the fraud settlement reached with the agency last September by tweeting false information about the number of cars Tesla plans to produce this year, and by sending the tweet without getting corporate permission first, as the settlement requires.

READ MORE: Premiers call for end to tariffs, reboot on Canada-U.S. relationship

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

New year, new decade, old habits?

Five things you should stop doing in 2020

North Thompson Fall Fair and Rodeo Ambassadors report in

Hello! Haille Johnson and Jonathan Fennell here, your North Thompson Fall Fair… Continue reading

Clearwater Winter Fest offers range of activities from Jan. 17 to 26

Clearwater’s Winter Fest is set to begin and will offer a range… Continue reading

Hockey lives in Clearwater

By K.A. Pendergast Modern day Hockey began reportedly in the 1500’s although… Continue reading

Boy, 13, arrested after alleged assault involving girl at B.C. middle school

Boy alleged to have used ‘inappropriate levels of force’ to injure the girl

Protesters block entrance to Victoria government building to support Wet’suwet’en First Nation

A letter with four demands was delivered to the Ministry of Energy, Mines and Petroleum Resources

Hospital patient pleads guilty to dumbbell assault of nurse in Abbotsford

Neale Heath admits to assault causing bodily harm in attack last September

‘Epic sky palace’: B.C. businesses help create dream treehouse for boy recovering from cancer

‘It was kind of a bright shining beacon at the end of a horrible, dark tunnel’

VIDEO: Nickelback gears up for nostalgia tour

Canadian band joins Stone Temple Pilots for a summer tour that includes just one stop in Canada

B.C. teacher suspended for poking student in stomach, pulling another’s ponytail

Teacher also swore in classroom, used Facebook to contact students

Larry Walker Jr. and Sr. keeping expectations low for hall-of-fame induction

Walker needs 75 percent of votes in order to be inducted into Cooperstown

Gene Simmons to launch new Titans of Rock music festival in Grand Forks

The rock legend has partnered with Chuck Varabioff to run Titans of Rock in Grand Forks

Most Read