With Model 3, Tesla hopes to electrify EV sales
There's a lot riding on Tesla Motors' (TSLA) newest car, the Model 3, set to debut Thursday. Elon Musk, the automaker's outspoken CEO, has promised to deliver an "affordable" electric car that will appeal to many more U.S. consumers than the $70,000 commanded by the company's Model S.
At $35,000 before incentives, the Model 3 is priced to make electric cars more mainstream. But can Musk deliver? Previous models, including the Model S and the Model X, which has yet to ship, have been plagued by delays. Tesla says its newest model, for which it will start taking orders on Thursday, won't start shipping until late 2017, though reports suggest the Model 3 won't hit U.S. roads until 2019.
What will it look like? The Model 3 reportedly will be about 20 percent smaller than the Model S, which would put it in about the same class as the Audi A4 and BMW 3 Series, both of which have base selling prices in the mid-$30,000 range. Tesla's base Model 3 sedan is expected to have a range of 200 miles on single charge, and reportedly will be equipped with features to allow the car to drive itself, though there may be additional fees to activate them.
The first version is believed to be a 4-door sedan, though rumors of a crossover or mini-SUV based on the same platform may follow soon afterward. Tesla, however, hasn't provided any insight into its plans for future models.
Also, the Model 3 was originally to be called the Model E, which when combined with the automaker's other offerings would spell S-E-X. But Ford (F) holds the trademark for the Model E moniker, forcing Tesla to come up with the next best thing -- the Model 3.
Though targeted at buyers of European cars, the Model 3 most direct competitor looks to come from Detroit. General Motors' (GM) all-electric Chevrolet Bolt EV is expected to achieve the same 200-mile range on a single charge, costs around $37,500, is already in initial production, and expected to go on sale later this year.
Musk has said that the Model 3 will be able to use the company's Supercharger network, which reduces recharging time down to 40 minutes for an 80 percent charge, just like most other Tesla models. Though it's unclear whether Supercharger hardware would be standard on the Model 3 or would be an add-on option.
Thursday's unveiling in Los Angeles is expected to be as much a high profile event as previous Tesla model launches, and will include a live broadcast. And while past models have wowed enthusiasts for being fast, sexy and stuffed with technology, there's an expectation that the Model 3 may trade some flash for practicality to keep its price in check.
Musk has a goal of building half a million cars a year by 2020. But with only 93,000 vehicles expected to be delivered this year, the bulk of future sales will have to come from the Model 3. Some observers suggest that will require Tesla to make compromises, such as using sheet metal on the Model 3 instead of mainly aluminum, which is used in the S and X models.
There may be other compromises that could limit the Model 3's "wow" factor, but only time will tell whether Tesla's effort to build an electric car for the masses will be a home run.