Tesla Model 3 electric car: Top 5 Facts to Know

Electric cars were once the stuff of sci-fi. What Tesla Motors is steadily turning them into an affordable reality? This post will breakdown news stories that might be on your radar in installment, we’ll counting down 5 facts you should know about the Tesla Model 3.

5. How is Tesla’s Model 3 different from previous Tesla Vehicles?

The Model 3 is the 4^th electric car released by Tesla, after the Roadster, the Model S, and the Model X with the major difference being its price with the starting cost of $35,000. It’s available for around half as much as Tesla’s next cheapest car – the Model S. As the company’s first venture into the affordable cars maker, the Model 3 is arguably one of the most significant car releases in decades. Receiving unprecedented press and public attention.

$35,000 – 200 mile range, that’s certainly a car that the average American will consider buying. Tesla CEO Elon Musk posted a glamorous launch event in California on March 31^st 2016 with the car expected on the road by late 2017. Post-launch Musk tweeted that the future of electric cars was looking bright.

CNBC called the unveiling of the Model 3 “a watershed moment for the entire auto industry”  the pushing innovation envelop faster than any of the big car manufactor”

4. Why is this model important to Tesla Motors?

Until now, Tesla has operated as a luxury car manufacturer, providing a futuristic vehicle for those with enough disposable income. For example the current Tesla Model S is priced to compete against luxury car brands such as Mercedes S Class and Lexus and the BMW 7 Series. Now the company is aiming to bring its car of the future to the masses while there are plenty of cars cheaper than $35,000 and Musk expects the average Model 3 price to reach around $42,000 with addons. Tesla has never been as achievable for so many people at its base model. It will now be able to directly compete with more popular models such as the Volkswagen golf, or the Toyota Camry.

Musk’s goal is to produce 500,000 vehicles a year and the Model 3 is crucial in achieving that. In 2015, Tesla posted losses of $889 million dollars and has consistently been operating at a loss since conception. But the hope is that the Model 3 will inspire profit - a high-volume vehicle. It’s an attempt to establish Tesla as a major car company, rather than each tech-heavy start-up.

3. How did the Industry and Consumers React?

Commentators have compared the anticipation for the unveiling to that of a smartphone release with similarities consistently being drawn between Tesla and Apple. Fans queued and camped out for hours outside Tesla dealerships across the US. With some stores in California seeing hundreds lined up outside. The first online pre-orders were taken an hour before the launch. With buyers paying a refundable $1,000 deposit to secure their spot on the Model 3 waiting list. Some without even seeing the car before hand.

According to Musk, 180,000 pre-orders were made within the first 24 hours, equating to around $7.5 billion made in a day.

Jack near at of Kelly Blue Book said “typically you don’t see pre-sales like that at all. There’s a magic around Elon Musk and Tesla that has enthralled a lot of people”.

2. How did the launch effect Tesla?

On the morning of April 1^st 2016, Tesla shares had surged 4,5% gaining over $10 to reach $212.20 by the afternoon. The trading volume of Tesla stock had more than doubled its 30 day average. While some analysts remain skeptical that the company deserves its high evaluation. Consumer excitement has certainly affected the market.

Elon Musk has given ambitious valuations of Tesla in the past. In 2/2015 he predicted it would skyrocket to $700 Billion. By clamor for the Model 3 has lent at least a little credibility to his high expectations. Within two days of the launch, over 230,000 buyers had reported made a deposit numbers which shocked even Tesla itself “recommend ordering soon, as wait time is growing rapidly”

1. What does this mean for the electric cars industry?

The hype surrounding Tesla’s Model 3 proves decisively that people do want electric cars. They’re no longer an outlandish concept but a cutting-edge Musk have for Tesla specifically. The early signs are good but there are still only refundable deposits to show. There’s no guarantee that every deposit will translate into a full purchase when the cars become available and as other established auto companies look to break into the electric car industry as well.

Tesla may find themselves ousted by competition, however comparisons are often drawn between Tesla and Apple for a reason. Elon Musk seems to create a brand synonymous with its sector that its reputation precedes. Why would thousands have paid the blind deposit as the iPod’s depart from other mp3 players. Tesla may prove to be another level of electric car with the Model 3 as its driving force.

Source: Watchmojo.com