Details of Tesla Motors Inc (TSLA)’s Model 3 from Elon Musk
Even as Tesla Motors Inc (NASDAQ:TSLA) is preparing to launch its SUV model, Model X, later this month, the company’s CEO, Elon Musk, talked about the upcoming most affordable model, Model 3. The company has already generated enough interest for both the models, i.e. Model X, as well as, Model 3. The Electric Vehicle maker has set a stiff delivery target for the current year, and the results of SUV model are crucial for achieving the delivery.
Delivery Tied To New Factory
Tesla Motors Inc (NASDAQ:TSLA)’s CEO comments assumed importance. In a tweet, Musk revealed that the production for the Model 3 will commence in about two years. That is based on when the Gigafactory in Nevada will get ready for making the affordable electric vehicle compared to its predecessor. Therefore, the production is tied to the new battery manufacturing factory.
The company’s proposed Model 3 will not only be smaller but also cost lower. The CEO said that a fully operational Gigafactory is needed to commence production. He offered a little more information that will entice the buyers. Accordingly, the Model 3 will cost $35,000. The company intends to unveil in March so that it can start pre-orders followed by that. The Model 3 will likely to be shown off in the year 2016 though the CEO, Musk, did not disclose anything to this effect.
Previous Approach To Follow
That might indicate how the electric vehicle maker has launched and commenced its pre-orders with its earlier Model S, as well as, Model X, which is a SUV. There was no doubt that the Model S has proved to be a popular one among the consumers. However, its starting price of $71,000 prevents more people from coming and buying the car. Therefore, Tesla Motors Inc (NASDAQ:TSLA)’s CEO, Musk, felt that at half the price of Model S, the new Model 3 should be able to attract more consumers.
Since the car will be smaller, it is quite likely that it will not carry too many batteries like the Model S. Therefore, it is also quite likely the range will be shorter. However, it will still be approximately 200 miles according to Musk.
Competition Will Heat
While Chinese group of investors have promoted NextEV to challenge Tesla in the electric vehicle segment, the company’s Model 3 might face competition from Chevrolet Bolt. That comes from the staple of General Motors Company (NYSE:GM) and launched it as a concept at the Detroit Auto Show early this year.
The biggest American automaker confirmed that it was working a Bolt version production to provide 200-mile range coverage. It will come with a price tag of about $30,000, which will be lower than the Model 3. Tesla Motors Inc (NASDAQ:TSLA)’s CEO, Musk, has earlier indicated that Model X deliveries will commence on September 30. Therefore, it is focusing on the schedule so that it can meet the yearly targeted delivery of 50,000 – 55,000 vehicles.
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