Tesla Motors To Introduce Model 3 Into The Luxury Market
The Model 3, which is the newest vehicle from Tesla Motors, will be available for reserved purchase on March 31, and the demand for the Sedan is expected to be extraordinary. The company has had trouble meeting orders in the past, and their SUV (the Model X) has still not arrived to all the customers. The Model 3 will likely result in long lines outside of some dealerships, and it’s being heralded as the iPhone of cars.
According to Tesla’s website, the reserve price for the Model 3 will be $1,000 in the United States, although actual production of the vehicles is not scheduled to begin until late 2017. The company will unveil their newest vehicle on March 31 via their website. Australian buyers will have the first opportunities to order the car due to the time difference. Unfortunately, there aren’t as many government incentives in Australia to buy electric as there are in the United States.
— Tesla Motors (@TeslaMotors) March 15, 2016
The Model 3 will be the second sedan that the company has released. Their Model S was released in 2012 and quickly overtook the market for large luxury vehicles. According to Bloomberg, although the Model S cost upwards of $70,000, more than 26,000 models were sold in the United States in 2015. In comparison, the Mercedes-Benz S-Class, which retails at $112,856, sold under 22,000 models.
But the Model 3 will be considered an “entry-luxury vehicle,” and that market is run by the BMW Series-3 and the Mercedes C-Class. The newest edition to Tesla’s electric family will cost $30,000, but there are many incentives, such tax breaks and the lowered fuel costs, that take a few more thousand off that price tag in the long run.
According to most estimates, a lot of customers won’t be able to drive their Model 3 until sometime in 2018. Tesla has announced that “when production begins, we will begin deliveries in North America starting on the West Coast, moving east.” They have also stated that consumers who already own the Model S or Model X will be given preference.
Model 3 reservations ($1000 down) will be accepted in Tesla stores on March 31 and online April 1
— Elon Musk (@elonmusk) February 11, 2016
According to their website, the best way to get your Model 3 quickly is to go to a Tesla store and place a reservation. This also gives preference to consumers in California, because while there a considerable number of locations in the Golden State, there are none in my home state of Delaware, and most of the Midwest is without Tesla stores. You can see the full list of stores here.
— Electrek.Co (@ElectrekCo) March 16, 2016
Giving preference to in-store orders also requires that first-time customers are around the Model S and Model X, and might influence a few sales for the company. In fact, Tesla stated plainly that the “fastest way to buy a Model 3 is to buy a Model S or Model X.” Although they are based in Hawthorne, California, Tesla has had huge success in urban markets. The New York Post recently stated that there are nearly as many Tesla charging stations in New York City as there are gas stations. They also estimated that there are around 1,500 Tesla drivers in the City. A surprising number of Tesla drivers are found in Brooklyn, which is quickly becoming an eco-friendly hub due to the arrivals of large start-ups in the borough.
The announcement of the Model 3 comes on heels of the company’s CEO Elon Musk’s now-impending divorce from actress Talulah Riley. According to CBS News, Riley filed for divorce yesterday, although they have been living separately for the past six months. This latest news marks the ending of their second marriage; they were first married in 2010 and divorced in 2012.