With the release of the refreshed Tesla Model 3, also known as the Highland project, on the way at some point in the near future, industry experts are wondering if the car might be the company's most affordable offering yet — and, if it is, whether that could trigger a price war within the electric vehicle market.
The actual price of the refreshed Model 3 and any other specific details about the car have yet to be announced. However, Brian Moody, executive editor for Autotrader, told a Forbes contributor that he expects that "the new update to the Model 3 should … bring the price down."
"This may be done by streamlining features and options or by renegotiating with suppliers," he added.
The current price of a Model 3 with "Standard Range" starts at $40,240, before tax credits.
While it is unclear how much lower the price of a refreshed Model 3 could get, if the cost does indeed get lower, any movement from Tesla on pricing could potentially trigger a price war in the EV market, forcing other companies to lower the prices on their entry-level EVs.
The most affordable EV currently on the market available to American consumers is Chevrolet's refreshed Chevy Bolt, which starts at $26,500.
While it would be a surprise to see the price of the new Tesla Model 3 drop that low, Moody told Forbes that, if successful, the car could lead to an even cheaper Tesla model in the future. "The success of updating the Model 3 and Model Y could help fund a 'Model 2'-type vehicle."
However, not everyone is optimistic about the mythical $25,000 EV coming into existence.
Ivan Drury, the director of insights at Edmunds, a car shopping website, told Forbes: "If [a $25,000 EV] materializes … and customers aren't left feeling like they've compromised on all other aspects of rideability — including adequate range — that would be a minor miracle."
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