"A $25,000 Tesla would upend the U.S. auto market. Incentives vary widely state by state, but the base incentive is a $7,500 federal income tax credit available to everyone in the country. Bringing the $35,000 sticker price of the Model 3 down by that amount would expand the potential market by roughly 50 percent, according to Morsy. Additional incentives would further knock down the price in more than a dozen states, including an additional $6,000 in Colorado and $2,500 in California, Massachusetts, and Tennessee. The only limiting factor for sales of a Tesla in this price range would be the company's ability to crank out cars."
$35,000.00 base price - $7,500.00 Federal tax credit - $6,000.00 Colorado State credit = $21,500.00 for a brand new base Tesla Model 3.
Supposing one adds $10,000.00 in options, the car is still incredibly cheap for a vehicle that's about the size of the Nissan Leaf and yet has 2x the range. Taxi companies and municipalities are going to snap base trims of the Model 3 up in droves.