Standardizing the car's autopilot feature to all trims - a feature that has been blamed for several accidents across the USA and is the crux of ensuing lawsuits - also affects its pricing options.
Tesla is also offering a Model 3 lease for the first time, though with a big caveat.
Tesla's announcement also said it would begin leasing the Model 3, but would not offer customers the option to buy the cars after their leases expired, a departure from the typical industry practice and its own policy on other models.
Tesla has been streamlining its vehicle options of late in a bid to make things simpler for consumers and optimized for production.
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The Model Y utility vehicle shares a platform with the Model 3. Previously, the base price of the Model 3 was $37,500 and Auto-pilot took another $3,000. It means the $35,000 Standard Model 3 will now be sold as a software-limited version of the Standard Plus.
Customers will have to visit a Tesla Store to buy the Model 3 Standard. Leasing options were also provided for the newest Tesla.
Aspirants can choose any Model 3 variant and with annual mileage options of 10,000, 12,000, or 15,000 miles. Customers won't have the option to buy the auto at the end of the lease because the company plans to use the vehicles in a forthcoming Tesla ride-hailing network, according to the blog post. Now, customers will receive the Model 3 Standard Range Plus model, which features a more premium interior and a battery with a software range limitation. The company might be playing it fast and loose with the word "competitive".
Model 3 SR Plus now available in Norway too, at a VERY attractive NOK 367,700. Instead, Tesla said it wants to use the cars as part of a future ride-hailing network as it works on self-driving cars.
It's important to highlight that "customers who choose leasing over owning will not have the option to purchase their auto at the end of the lease".