Tesla Motors has revealed the long awaited Model 3 Thursday, March 28, 2016, and is already taking pre-orders. With a refundable deposit of $1,000 per car, people can reserve one for themselves. CEO and founder Elon Musk announced the Model 3 from the Tesla Design Studio in Hawthorne, Calif.
Musk walked on stage in front of hundreds of patrons and said, “It’s very important to accelerate the transition to sustainable transport. The last time there was this level of carbon concentration in the atmosphere was 11 million years ago.” He added, “Beyond global warming there are 53,000 deaths per year from auto emissions.”
Tesla has been working hard to design a car that would be a sustainable means of transportation. Part of the challenge was building a car that consumers will like. The other part was fighting the stigma electric cars have regarding their driving range. The Model 3 claims to have checked both boxes.
Within 24 hours of the unveiling over 100,000 reservations were made. By Friday, Musk tweeted, Tesla received 198,000 deposits for the Model 3. According to International Business Times, the company is hoping to deliver 500,000 Model 3’s per year by 2020.
The $1,000 deposit has been set up to help the company. Investor’s Business Daily reports, the deposit will aid in the production of the Model 3. Tesla stores in Washington D.C. and New York were reporting large numbers in reservations. James Albertine, Stifel auto analyst, reported an average of 30 to 40 reservations per hour.
The Model 3’s popularity has had a great impact on the company. Tesla’s stock rose by 8 percent on April 1, which was a six-month high. Investor’s Business Journal reported Tesla’s stock closed at 229.77 on the Thursday of the unveiling.
Morgan Stanley automotive analyst, Adam Jones said, “We believe the milestone may mark an important pivot in investor sentiment which has been rather negative around the company for the past few quarters.”
Before this climb in value Tesla had been struggling with profitability. Arstechina.com reported that Tesla posted losses for 11 straight quarters. The company has had a hard time keeping up with the demand for its Model X, which was announced back in 2015. The company said it was expected to start seeing profits during this quarter.
Tesla has revealed stats about the Model 3 and is taking orders for the new electric car. The car will dispell rumors about its distance capacity. The Model 3 boasts a 215-mile battery range, at a minimum. That is about the distance from Washington D.C. to New York. The car can make the jump from 0-to-60 mph in under six seconds. Tesla has equipped the car with autopilot safety features. Musk also said the car will comfortably fit up to five passengers. Without the large combustion engine, the Model 3 will have trunk space in the front, as well as the rear.
Musk said it was important to show the world, “the electric car can be the best car.” He also announced the Supercharger stations, which will be standard on the Model 3.
The roof on the Model 3 will be glass. The glass will be able to absorb and reflect UV light. This feature is supposed to keep the car from getting overheated in the summer sun.
Musk estimated the average cost of the new Model 3 would be $42,000. The base price would be $35,000, with many upgrades available. The base price includes the autopilot feature and several other safety features and Musk said it will compete with the major car companies.
Musk has announced when Tesla will make the Model 3 available. The CEO said Tesla will have the cars out by the end of 2017.
Tesla Motors has revealed the long awaited Model 3 and have already begun taking orders. At $35,000, the midrange SUV will have plenty of features. This electric car will have a distance of 215 miles. The company is hoping to create an electric car that can be a viable alternative to combustion engines. Their Model 3 could be the ticket.
By Harrison Baker
Edited by Jeanette Smith
Arstechnica.com: Tesla’s Model 3 is here—with a 215-mile range, to be delivered in 2017 [Updated]
International Business Times: Tesla Motors Inc (TSLA) Stock Rallies After Tidal Wave Of Model 3 Preorders, Q1 Sales Report Coming Soon
Investor’s Business Daily: Tesla Motors Model 3 Revealed, Over 150,000 Orders Already
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