American electric carmaker Tesla Motors has already made available for pre-ordering its less expensive sedan, the Tesla Model 3, which means that the vehicle is just around the corner waiting to be officially launched.
Based on previous reports, it is likely that Tesla Motors will launch the Model 3 next month but the mid-range electric vehicle would only make it to the American dealerships sometime next year. As to when exactly next year, Tesla has yet to make another announcement.
According to Extreme Tech, a well-built Tesla Model 3 could kickstart Battery Electric Vehicles (BEVs) in the US in a way that no vehicle has done in the past.
It has been the vision of Tesla Motors CEO Elon Musk to be able to build an affordable electric vehicle. When Tesla made the Model 3 available for pre-ordering just recently, it came out with a price tag of $35,000 before incentives.
Factoring in the application of substantial federal and state rebates, it could go down to as low and affordable as $25,000. That shall put the Tesla Model 3 squarely in the mid-range category, and still cheaper than the average cost of a new car in the US which is pegged at $31,000.
Vehicles above $35,000 are typically niche products like SUVs and trucks. Americans are also far more willing to consider battery-powered electric vehicles as the cost drops over time on the condition that the vehicle meets range requirements.
The Tesla Model 3 is expected to offer at least 200 miles of range. It is to be roughly 20% smaller than the Model S, and with fewer luxury features too, details Bloomberg Business.
Triggered by the falling price of oil
The slight decrease in US sales was driven by the dramatically falling price of oil in the world market. The slump actually began back in 2014 and it has continued since then.
Motoring analysts believe that the short-term spikes or dips should not drive purchasing as much as they do, but people tend to think in the short term and often buy vehicles that they would drive for based on the prevailing market price of oil.
Despite the projected setback, Tesla Motors has obviously established a great deal of credibility with the Model S. If its Model 3 proves as popular as the company hopes it to be, the vehicle could actually unleash pent-up demand.
And if the Model 3 keeps most of the acceleration of the Model S, it could establish itself as the most affordable mainstream EV that is also fun to drive.
Intense scrutiny
Incidentally, Tesla Motors is facing intense scrutiny from investors after the production delays for the ongoing rollout of the Model X SUV. The company stock has dropped 38% in 2016, wiping out $12 billion in market value.
Thus, the pressure is now on Tesla Motors to make the launching of the Model 3 soon. Musk has confirmed recently that mass production of the Model 3 will start next year.
Unlike the other Tesla vehicle models which are mostly behind launching and production schedules, the Model 3 has some noteworthy advantages over the other electric cars of the company.
It is easy for Tesla to make pronouncements about its Model 3 since its drivetrain is largely plug-and-play so it should not be a hurdle at all to the company. Tesla has already come up with numerous drivetrain and battery pack configurations for the front, rear, and all-wheel drive vehicles.
In addition to creating drivetrains for its very own Roadster, Model S, and Model X, Tesla has also done the same for the Toyota RAV4 EV and the Mercedes B-Class Electric Drive.
So coming up with an appropriately-sized motor, controller, and battery pack for Model 3 would simply be a walk in the park for Tesla.