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Tesla's next car could cost only $25,000 - if you live in the right state

Feb 10, 2016, 00:00 IST

AP Photo/Ng Han Guan

Tesla's next car will be a lot cheaper than previously expected.

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In fact, it could cost as little as $25,000.

CEO Elon Musk confirmed last year that its first mass market car, the Model 3, would price at about $35,000.

However, it wasn't exactly clear until now whether that price would include tax incentives.

Tesla told Bloomberg Tuesday that the $35,000 price tag does not include tax incentives, meaning that with tax refunds included, the car could end up costing only $25,000.

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The Model 3 is expected to have a range of about 200 miles per charge and be smaller than the Model S. Tesla is expected to show off the Model 3 at an event at the end of March and begin producing the car by the end of 2017. However, it's unclear if the company will show off the actual car or if they will only show off images.

Regardless, Musk has said a few times recently that he is pleased with how the Model 3 is turning out so far.

However, Musk has emphasized that the Model 3 will not have as many features as the Model X.

"I do feel pretty optimistic about the Model 3. The key thing with the Model 3 is higher volume at a lower price. It is a smaller car, and without as many bells and whistles as the Model S or X," Musk said at a recent event. "But the goal is to have a very compelling, affordable, mass market electric vehicle and I feel pretty good about that goal."

NOW WATCH: We took Tesla's brand new Model X for a test drive

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