Tesla Model 3

Tesla recently many announcement about introducing the Model 3 which is an entry level version of their electric car. It is a much needed model for Tesla considering that the Model S and P and X are too expensive for many people despite tax rebates or other incentives. Their target price for the Model 3 is around US$30,000 or less. This will enable Tesla to sell a lot more cars and let people have a taste of electric car without paying more than they have to.

The Model 3 is not ready yet but it looks promising. The estimate driving range is approximately 300km on a single charge. It is not great but still better than the Nissan Leaf with 250km. If Tesla is able to stretch the driving range to over 350km it will turn the tables in its favour. Right now the biggest gripe with owning an electric car is the driving range. The Model 3 is also critical for Tesla in a sense that it will be able take the challenge to bigger car makers. Porsche and Audi are already planning more electric cars which undoubtedly will compete for sales with Tesla.

The Model X SUV is simply too expensive and the gull wing doors are not really practical. It may look impressive and is powerful but a smaller entry level model will make more sense for Tesla. The more cars they sell, the more recognition the brand receives. It will also spur many first time buyers to try Tesla or even someone who has never owned an electric car.

Tesla is well received in California but in other countries where electric cars are still not well received, the Model 3 will help Tesla get a foot in the door. The official launch of the Model 3 is still many months away and many industry observers are eager to see the outcome of the new Model 3 and how it will impact Tesla's growth.