Categorized | Auto, Product Reviews

Tesla to Produce More Affordable Car

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CEO and founder of Tesla Motors Elon Musk, has finally confirmed that the company will be producing a more affordable car for the general populous. The car which will be named the Model 3 is set to debut in 2017 at around $35,000 and is looking to compete with the BMW 3 Series. So the question becomes now, How will a more affordable Tesla impact the automotive market?

Tesla Motorstesla 2

The California based electric car company Tesla Motors has proven to the world that there is a place in this world for an electric car. By introducing a car that was both desirable and efficient, Tesla has been able to produce one of the most environmentally safe and sought after cars in recent history. At first there were two models on sale, the current Model S and the previously available Roadster which were both widely popular yet expensive. To date their current available Model S has given Tesla the cash flow and success to effectively look onward towards expansion. Earlier in the year, Tesla had announced plans to purchase land for a new factory in which the company would produce vehicles in addition to their California plant, as well as commercialized versions of their lithium battery.

The Model 3

The Model 3 would be the fourth vehicle overall that Tesla will have put on the market. As mentioned earlier the original Roadster, the Model S which is currently on the market and the soon to be released Model X which will be a sport utility vehicle. The Model X is set to be released sometime next year which has also brought some more positive press for the company because of the expansion in interior room and capability for consumers looking for the same reliable performance. The Model 3 as has been described by Tesla is to be on the same level of reliability as the rest of the brand but would compete most competitively with the BMW 3 Series to which it would most likely compare to. The Model 3 would bring the affordability of a Tesla to a bigger consumer market. Right now the company offers an industry top rated vehicle that has quickly accelerated past all of its competition, so much so that other companies have identified Tesla as a major threat to current business. That being said Musk has stated in previous interviews that the company is more than willing to share its patens with other companies in the industry in order to pass of the wealth of technology onto the customers who are the real profiting faction.

teslaThe Model 3 if it were to perform to the capability of the Model S would revolutionize the category in which it is to compete. For midsized sedans one of the most common complaints from consumers has been the limited range achieved by relatively expensive electric or hybrid cars. Simply put, the sticker price does not equal out to the performance of the car. Because of this issue, gas fueled midsized sedans and compacts have flourished tremendously as other auto manufacturers have refocused their efforts into producing light more fuel efficient cars. If Tesla’s Model 3 can provide customers with a vehicle that compares in price as well as in range and maintenance cost, then the brand will succeed in breaking into a much more heavily populated targeted audience. Thus far the brand has only appealed to a much wealthier, more established section of the consumer bracket that has been looking for performance and comfort, and can afford the lofty price tag. Tesla has had trouble in overcoming some of the more conventional challenges such as getting a heavier vehicle to exceed 300 miles per battery charge which would rival some of the more popular model on the road such as the Nissan Altima or Honda Accord. The other biggest concern when it comes to highway drivers would be the availability of recharge points and time it took to recharge the battery. It may only take a few minutes to fill up a gasoline tank, whereas with the electric car it could take a matter of hours.

With Tesla looking to branch out into a more populated consumer market, the company will be entering into a much higher more competitive state with the other car companies. What consumers have been looking for when it comes to their personal needs and views on transportation has evolved rather quickly in a such a short time. Where 10 to 20 years ago the market was craving gas guzzling trucks and larger SUVs, now more fuel efficient and cheap to maintain are in demand. The customer base has showed support and willingness to buy and drive a fully electric vehicle if the price tag was a little more conservative to the needs of the market. Fiat has described issues with the 500e to which even the CEO has asked consumer to stop buying the car because it is costing the company $14,000 with every sale. This concept makes many wonder if the $35,000 price tag would consume the profit that were to be made on any sale of the Model 3.


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