The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
N Adarsh Varma, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur.
After 10 years of waiting, the CEO of Tesla, Elon Musk has revealed the Model 3 which he hopes will take the electric car to the masses. Even the CEO has confirmed that the base car will do 0-60 mph in less than 6 seconds and the car will deliver at least 215 miles up on single charge, but Teals hopes to exceed those numbers in the final car. It can be observed that the Model 3 also supports Tesla’s high-speed Supercharging network which enables it to charge instantly. It can be seen that the Autopilot hardware is standard, and all safety features will be active automatically. Considering the seating arrangement, it can accommodate five adults to fit in comfortably.
The two current Tesla vehicles, the Model S and Model X, are both extremely expensive. Even with tax incentives, both cars easily cost up to $100,000 which cannot be purchased by the normal people apart from a niche market. So in order for Tesla to sell ten times as many cars as it does now, it came up with a much cheaper automobile, the Model 3 which costs around $35,000. It can be considered as the future of the company since it is targeting a large number of people.
The Tesla Motors Co. had secured about 180,000 reservations during the first day of ordering for the Model 3 but the car would be available on sale at the end of next year i.e., 2017. Even the Chief Executive Elon Musk referred this small electric car as the capstone of a “secret master plan” that was crafted years ago to popularize electric cars.
Tesla’s new car will hit the market as its bigger rivals begin to launch cars that could more directly compete. General Motors Co. aims to launch an electric small car, Chevy Bolt later this year, capable of 200 miles on a charge and a price, after tax incentives, of around $30,000 and Volkswagen AG’s Audi brand is planning an electric sport utility which can capture the market targeted by the Tesla People. This shows that the market for the electric cars can be estimated to increase in the future and these electric cars can be the future of the automobile industry and can be the best suited car for many people.