Tesla hopes tax incentives will reduce the $35,000 model 3 price

The Tesla Motors Model 3 will retail for $35,000, though buyers will actually get it for much cheaper.

Pre-orders for the electric car start as early as next month. The cost at time of purchase, however, does not include the significant tax breaks offered by the U.S. and state governments, according to Tesla CEO Elon Musk.

Bloomberg reports "these tax incentives can knock off as much as $10,000," which is significant in that it helps fulfill Tesla's objective of affordable electric vehicles. That's significantly cheaper than the Tesla Model S sports sedan. Though it's important to note that tax incentives are not equal in every state. Meanwhile the base, federal income tax incentive begins at $7,500.

At first, anyway. The federal break is set to dwindle over time, meaning that the Model 3 will need to strike quickly in order for customers to take advantage. Tesla currently plans to start production on the new electric car sometime next year.