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Tesla cuts $4,000 off Model 3 price with new mid-range battery

Tesla Inc. began selling a cheaper version of its Model 3 sedan Thursday, but the price tag is still higher than originally promised and federal tax incentives that could bring down the price are set to expire.

The new version features a new mid-range battery and a starting price of $45,000, the electric car maker said late Thursday — $4,000 less than the previous starting price of $49,000. For well more than a year, Tesla TSLA, -2.90% has been touting an eventual Model S with a base price of $35,000 that will be affordable enough to appeal to the masses, but one still is not available.

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