Tesla CEO Elon Musk Tweets Out Model 3 Info

The Tesla Model III sedan is scheduled to be unveiled in March of 2016. This revelation comes directly from a Twitter posting from Tesla Motors CEO Elon Musk. The Model III has been the subject of much intrigue as it’s meant to be Tesla’s way to produce the first mass-market electric car.

In a two tweets in the afternoon on Sept. 2, Elon Musk said,” Model 3, our smaller and lower cost sedan will start production in about 2 years. Fully operational Gigafactory needed.” Musk’s next tweet read, “$35k price, unveil in March, preorders start then.” What Musk said clarifies speculation about Tesla’s plans for their newest creation. The price point for the Model III has been speculated to fall somewhere between $30,000-$35,000 making it the perfect competition for the Chevy Bolt. Between the Chevy Bolt and currently still mysterious Tesla model III there are more similarities than just the price. Both vehicles are supposed to have a range of approximately 200 miles per charge and debut in 2017. Both vehicles have been confirmed for production and are intended to bring the electric vehicle to the mass market. However, along with the similarities, there are key differences.

As Musk said in his tweet, “fully operational Gigafactory needed.” Tesla motors is relying upon the construction of their $5 billion gigafactory in order to lower the cost of lithium-ion batteries enough to make the Tesla Model III a feasible option for mass production. Tesla’s chief competitor in the under $40,000 all-electric vehicle space is General Motors, a well-established automaker that is in no way relying upon building a ginormous factory in order to make production of the Chevy Bolt possible. Tesla Motors reported in August that they lose $4,000 on each Tesla Model S, a trend that could continue with the Model X and Model III.

Can Tesla afford to lose that much on each Tesla Model III, X and S? The other question at hand is whether or not another competitor such as Nissan or Hybrid pioneer Toyota will have something to say about the mass-market electric vehicle race.