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Tesla Aims To Shake Things Up With New Model 3

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Tesla Aims To Shake Things Up With New Model 3
Tesla Aims To Shake Things Up With New Model 3

Why Tesla Aims To Shake Things Up With New Model 3?

Following on the success of the Tesla Roadster and the Tesla Model S, the electric car manufacturer is looking to offer a more affordable alternative to consumers. Price is still one of the biggest hurdles for many customers that might otherwise buy a Tesla, which is why the company is aiming for a more cost effective option, the Model 3, in the near future.

Slated to hit showroom floors sometime in 2017, Tesla hopes to offer the vehicle for $35,000, Reports, however, suggest that it may be closer to the $50,000 price range--still significantly cheaper than both the Model S and the Tesla Roadster.

Though Tesla is believed to have the lowest cost-per-kilowatt-hour of the electric car manufacturers, the cost of the battery is still a major cost issue. With some projections showing that Tesla is already approaching the $200/kWh in terms of battery cost--an important targeted measure for any electric auto maker--that number will still need to come down in order to meet projected price expectations. The trade off with a smaller battery, which the Model 3 will have, is that it gets less mileage than the more expensive models.

To learn more about kilowatt-hours as a measurement of fuel efficiency, visit this resource from Edmunds.com.

The Future Of Electric Vehicles: Mainstream Acceptance

Tesla can currently produce as many as 200,000 electric cars annually, though CEO, Elon Musk admits that it would not be easy to reach that number. The company is currently building a battery plant in Nevada, which they hope will allow for yearly production numbers closer to 500,000 vehicles. Still, even with the growth of Tesla and the yearly increases in electric vehicles sold, forecasts put the market share for electric vehicles at less than 1%.

This small market share of the auto industry may partly explain why Tesla has released the patents for their technology and allowed other manufacturers to use them. Musk has said they will not seek out patent law suits against companies using the technology in “good faith.” While the move surprised some, it shows pretty clearly that Tesla views its spot in the electric auto industry as pretty securely at the top. The message seems to be that what’s good the electric car industry will be good for Tesla in the long run. Much of that early success may will be riding on hitting the price point for their newest offering in 2017.

Electric Vehicles Resources

Tesla Blog & Press Releases - Stay on top of what’s going on at Tesla Motors and the electric vehicle market at large by following the company blog. Tesla CEO, Elon Musk, frequently posts updates and information about future products.

Green Car Reports - Get news and information about electric cars from Green Reports, a resource for green driving solutions in the automotive industry. 

Joe Webster
Written By:Joe Webster
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Joe Webster began his journey in the auto transport field by attending the University of Southern California (USC), where he graduated with a Bachelor of Business Marketing. 

After college, he started his career in the auto transport industry from the bottom up and has done virtually every job there is to do at A-1 Auto Transport, including but not limited to: Truck Driver, Dispatch, Sales, PR, Bookkeeping, Transport Planner, Transport Manager, International Transport Manager, Brokering, Customer Service, and Marketing. Working with his mentor Tony Taylor, Joe Webster has learned the ins and outs of this industry which is largely misunderstood. 

With over 30 years experience in the industry, we've been helping people ship their vehicles, motorcycles, RV's, heavy equipment, household goods and more across the country or overseas without a hitch. Ask us anything.

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