Business

Will Tesla be able to produce Model 3 of $ 35,000?

More than two years since Tesla began receiving $ 1,000 advances for Model 3, it is becoming increasingly unclear if it eventually makes available the $ 35,000 multi-advertised model, thus fulfilling the CEO Elon Musk’s long-term vision of mass production of electric vehicles. That’s because if it does, it could be fatal for Tesla’s finances.

Musk, who camped at Tesla’s Tesla plant in Fremont, California for weeks to oversee the small sedan fixes, used Twitter at the weekend to showcase the benefits of the all-wheel-drive model of the same series in the worth $ 78,000. This is part of the long battery category that is already available and costs over $ 50,000. The company is simply unable to prepare the cheapest version by the end of this year, ideally long after the production rate of 5,000 vehicles / week, he said in a tweet.

This concession, while stating the obvious for a company that recorded successive losses in the last two quarters, is another reminder of how unprepared Tesla was to turn from a manufacturer of technologically advanced electric vehicles that usually cost over $ 100,000 each to a manufacturer car, the price of which is close to the industry average for new vehicles. At best, $ 35,000 vehicles could reach customers by the end of 2018. At worst, Tesla chooses to choose not to build them.

This case is definitely a precedent. In 2013, after the successful launch of Model S, Tesla unexpectedly advanced to a $ 49,900 base issue, relying on low demand. It was a surprise move as Musk had promoted the $ 50,000 starting point in his “Masterplan Master”.

Separately, the Consumer Exhibition reported on Monday that it can not currently propose Model 3 due to defects identified in the braking of the car and buttons that were considered difficult to use. “The 45-foot distance that Tesla needs to stop from 60 km / h was much worse than any modern vehicle we’ve tested,” the report said.

Tesla challenged it and replied that her own structures measured the stopping distance of 40.5 meters. Tesla this month reported that it had more than 450,000 bookings for Model 3 without giving details of cancellations. It has also not clarified how many of these are the basic version of the model.