As the positive news flow from Tesla continues, it has been revealed today that the company will have a budget electric car available for the mass market in 2017. This is the news that the whole electric car industry has been waiting for, with the company seemingly able to transfer the vast majority of Tesla technology to a more affordable vehicle. The announcement was made by CEO Elon Musk who has been extremely vocal over the last few weeks prompting an array of positive news.
Tesla Model 3
The vehicle in question will be known as the Tesla Model 3 and while comparable to the Tesla Model S, currently priced at around $70,000, the budget vehicle should cost around $35,000. It is unclear at this moment in time what this would equate to in the UK market as a direct currency conversion is not always a reliable guideline. However, there is no doubt that the introduction of a high quality budget vehicle will significantly increase the company’s exposure and client base.
Why the delay?
Tesla has been promising a budget sedan for some time now, although it appears that the delay is due to the building of the company so-called “gigafactory” in Nevada. The $5 billion project will house the company’s battery pack production line allowing Tesla to scale up its battery production and bring prices down to a more affordable level. This could certainly be a major turning point in the mass-market electric vehicle sector and while the proposed budget Tesla may not be in the price bracket of all EV fans it will certainly attract attention.
Quote from ElectricForum.com:- "Tesla has become renowned as an electric car specialist in the area of speed and luxury. The unveiling of the next generation of Tesla Motors has caught many people by surprise with the Tesla Signature Model X now available to “Signature Model” reservation holders at a price which starts at $132,000. Yes, while much of the talk has been of an affordable electric vehicle to add to the Tesla range it seems the company has now introduced the most luxurious of luxury vehicles."
What style can we expect?
The company has already stated that the budget sedan will be “way different from any other car on the road” which is certainly something of a bold statement. However, those who follow the electric car market will be well aware that Tesla tends to deliver on its promises and has been known to go over the top with regards to technology and add-ons.
It is certain that the vehicle will maintain a large part of the so-called “Tesla style” and we can also be certain it will be instantly recognisable. The company may well need to hold back on the more expensive add-ons and luxury services but then again the company tends to enjoy surprising the market!
Is Tesla responding to the competition?
There has been much talk of competition for Tesla’s crown as the King of the electric vehicle market. Names have been mentioned and high profile investors appear connected, but Tesla has invested billions of dollars in years gone by to give it very strong foundations. It would take a huge investment by a newcomer to the market to challenge Tesla and the reality is that this would take time. While competition is certainly good for any sector those who are suggesting a competitor will appear overnight could be well wide of the mark.
It is also worth looking at Tesla’s history and the fact that the company has even opened up its technology patents to competitors. Is this a company which is unable to sleep at night? Is this a company which is scared of competition?