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Tesla Reveals New Details About Its Most Affordable Car Yet
Posted On Feb 12 2016
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Tesla is expected to preview the Model 3 in an event March 31, though it’s not clear whether the company will reveal the entire vehicle. Unlike the Model S, Tesla’s first fully in-house made vehicle, the Model 3 will be designed “for ease of manufacturing”, Musk said on the call.
But it’s not been an easy period for the company. The Model 3’s $35,000 list price does not take into account federal and state financial incentives, which could lower the actual price of the auto to $25,000 in California.
But reportedly that price tag is likely to be reduced further by government subsidies for electric vehicles in place around the world. The company would start production and commence deliveries in lay 2017 only.
Tesla also plans to open 80 more retail and service locations while it expands its Supercharger locations to around 300 more.
Tesla CEO Elon Musk has confirmed through Twitter that the Model 3 will be partly unveiled on March 31st and that the company is going to start accepting reservations for the new vehicle in stores the very same day.
Furthermore, Tesla expects total deliveries of 80-90K in 2016, which reaffirms sales growth of 60%-80% and represents sales of about 1600-1800 cars per week.
Long awaited, the Model 3 is meant to be Tesla’s first “moderately priced” auto. For a cheaper price of Model 3, it is expected to be the most popular product for Tesla in the coming years.
Tesla Motors is expecting to generate positive free cash flow in the current fiscal year.
Tesla’s shares had fallen in recent days as investors anxious that the Model 3 would be delayed. Signature versions of the Model S and X were put on sale and came fully loaded with the top features. The company said the costly Model X development and initial rollout weighed down on earnings.
Shares in the tech/ automobile firm added over 6% in NY and surged after hours after it posted quarterly earnings, which sent out a myriad of mixed fumes (although of course it didn’t, cos it’s electric vehicles).
