With the unveiling of the highly anticipated Tesla “Model 3,” all eyes will be on Tesla Motors Inc (NASDAQ:TSLA) stock. Here’s what you need to know about Tesla’s mass-market electric vehicle (EV).
If you think Elon Musk will reveal everything about Tesla Model 3 today, you’d be wrong. In a Twitter post yesterday, Musk said that today’s event would be just part one of the Model 3 unveil and that “Part two, which takes things to another level, will be closer to production.”
Tomorrow is Part 1 of the Model 3 unveil. Part 2, which takes things to another level, will be closer to production.
— Elon Musk (@elonmusk) March 30, 2016
Still, there is already quite a bit of information available on the Model 3. Let’s take a look.
Tesla Model 3 Price
As the company’s foray into the mass market, Model 3’s biggest difference from Tesla’s other offerings is its price. There’s no denying that Tesla has a huge fan base worldwide. But up to this point, not many people could afford a Tesla. Its first model, the Tesla “Roadster,” starts at over $100,000. The later “Model S” sedan and the recent “Model X” SUV have lower starting prices. But when you add a few options, their prices could still easily go over the six-figure mark. The “Signature Series” of the Model X starts at a whopping $132,000. The good news is that Tesla’s Model 3 won’t be nearly as expensive as the company’s other offerings. The Model 3 will start at $35,000 before government incentives. If you get the $7,500 federal tax credit in the U.S., the base model could start as low as $27,500.
Tesla Model 3 Range
Range has always been a concern for potential buyers of electric cars. While everyone loves the instant torque offered by electric motors, they also want the ability to go places without having to stop for a few hours to charge the battery. As with all electric cars, the Model 3’s range will depend on a number of things: battery capacity, weight of the car, efficiency of the drivetrain, and, of course, how you drive it. If you put the pedal to the metal all the time, don’t expect to go very far in an EV. For the Tesla Model 3, the company will likely offer different battery packs. With an 80 kwh battery pack, the Model 3 might be able to travel more than 300 miles on a single charge. (Source: “Tesla Model 3 Exclusive Leaked Specs: 0-60 Under 4 Sec Fast and 300+ Mile Range Options,” Electrek, March 30, 2016.)
Tesla Model 3 Performance
One of Tesla’s biggest achievements is making electric vehicles fun to drive. Tesla fans don’t just buy Teslas because they want to save the environment; they also buy Teslas for the driving experience. With such impressive performance figures on the current Tesla models, the Model 3 has a lot to deliver. The higher-end version of the Model 3—with all-wheel drive and a larger battery pack—is expected to accelerate from zero to 60 mph in less than four seconds.
How to Reserve a Tesla Model 3
If you want to get a Model 3, you better act quickly. While you can place an order online, Tesla says that visiting a Tesla store “will allow you to get a better spot in the queue.” (Source: “Reserving Your Model 3,” Tesla Motors Inc, March 24, 2016.) According to a picture posted by Elon Musk, people are lining up for the Tesla Model 3:
The Bottom Line on TSLA Stock
Note that despite the unveiling, production of the Tesla Model 3 won’t begin for at least another year. Delivery is expected to start in late 2017.
Still, the Tesla Model 3 could be a huge catalyst for TSLA stock.