With A Price Tag Of $35,000, Tesla’s Model 3 Could Reach A New Audience

Tesla CEO Elon Musk announced a 2016 date to reveal the Model 3, with a launch of the car in 2017. The vehicle is expected to be priced at around $35,000, which would make it a far more affordable offering than the company has ever made. Anticipation for this new vehicle is high, in part because its low price could prove to be the driving force behind a massive increase in the number of electric vehicles that are on our roads in the future.

“I mean, we are hoping to show off the Model 3 in approximately March of next year,” Musk said during the Tesla Earnings conference call this week. “Again, like, don’t hold me to that month, but that’s, like – that’s our aspiration.”

Well, that’s certainly far from a guarantee, and it’s worth remembering that Tesla often misses its release windows. For example, the Model X is only just coming to market now, which is two years after its intended release date. Regardless, the Model 3 is still an exciting prospect for the auto industry, and especially interesting for those who have considered purchasing an electric car but found that the price range was out of reach.

The Model 3 is expected to have a driving range of approximately 200 miles on a single charge, and the vehicle will be about 20 percent smaller than the Model S. Certainly, the low price tag is one of the most enticing aspects of the car, and this may open up interest in electric vehicles to a wide new set of consumers around the world.

There’s a great deal of buzz throughout the auto industry about the Model 3 and its low expected price tag. Although its release is still far in the future, we’ll be watching for more details in the meantime as they become available.

Tesla beat analysts expectations for Q1 2015, by reporting a lower-than-expected loss as the company continues to increase sales of its electric sedans while preparing for the launch of its new electric crossover vehicle. Tesla reported a loss of $45 million, or 36 cents a share, on an adjusted basis, which is less than the consensus estimate of 50 cents a share. The loss came on $1.1 billion in revenue, which was slightly better than expected.

The company explains that it is seeing “growing” demand for the Model S sedan. Tesla delivered 10,045 cars during the quarter and predicted that it would be able to produce 12,500 in the second quarter. The company restated its promise to deliver 55,000 units of its Model S and the Model X electric crossover this year.

“I’m feeling pretty good about things,” said CEO Elon Musk on a call with analysts after the report.