New York (CNN) Tesla has long promised a pared-down version of its Model 3 sedan that would be $35,000. The electric car company announced Thursday, more than a year after Tesla began delivering Model 3s, that price point is finally available — but CEO Elon Musk said the company will have to close stores and lay off workers in order to make it financially sustainable to produce the cheaper car. The Model 3 is "excruciatingly difficult" to make at the reduced price, Musk told reporters on a conference call. The base model will have 220 miles of range, a top speed of 130mph, the company said in a blog post"This is an important milestone for Tesla," Jessica Caldwell, executive director of industry analysis at Edmunds, said in statement. But she also cautioned it "might be too little too late," considering federal tax credits for Tesla-made EVs were slashed from $7,500 to $3,750 at the beginning of the year.

Source: CNN February 28, 2019 20:04 UTC