Tesla Model 3: The Cheapest Upcoming Car In The Market?

Apr 14, 2017 11:00 AM EDT | Paula

Upon its launch, Tesla Model 3 will be one of the cheapest vehicles to date. Tesla Head Elon Musk clarified that the car is not an offshoot of Tesla Model S.

When it was created, the company focused on the affordability of the car and that is the reason why they went on cost-cutting. The upcoming car only has half the wiring of its predecessor and has only one computer screen.

Tesla Model 3 also has fewer seats and lack the seven seat option that Tesla Models S has. It has less cargo space and features like the automatically extended door handle.

It also has a slower range, acceleration, and power. In summary, this car may be cheaper but it also has lesser features than other Tesla cars.

Tesla Mode 3's frame is also 20 percent smaller than Tesla Model S. It is actually using a partial aluminum frame that is cheaper than the frame of the car's predecessor.

Elon Musk believes that the upcoming model can generate a $20 billion revenue with a $5 billion gross profit. This means that there is a 25 percent margin on every Tesla Model 3 car they sold.

So far, Tesla had an estimated 400,000 pre-ordered cars. Musk is actually ramping up the production of the upcoming Tesla cars to make sure they meet their targets.

He is actually warning the public for anti-selling of the products to encourage buyers to buy more expensive vehicles. The company might offer optional features on their new product to increase the price.

Analyst Ben Sullins explained that the average price of the car might be around $50,000 because of the additional extras buyers might get with the car. This is a far cry to the original price of the car which is $35,000.

Tesla Model 3's production will begin in the summer months. Elon Musk also tweeted that the upcoming Tesla car will be launched in July.

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