Today, Tesla Day. The automaker said it hopes to complete the production of “S N 1” (or “a serial number”) Model 3, its first electric car for the masses. But Model 3 is not any car.
All for the success of Tesla as a viable rental company was built up to this point. Model 3 will define the future of the company – and bets for Tesla CEO Elon Musk could not be greater.
Earlier this week, musk tweeted Friday was the day the first Model 3 would roll on the assembly line. In the following tweets, he added that the first 30 customers receive their new Model 3 Teslas July 28 during a party organized by the transfer of the automaker.
“I think I can say witty irony, it’s the biggest electric car ever produced,” said Michael Ramsey, research director at Gartner. “This is because if it fits the needs of hundreds of thousands of sales, it is changing the worldview of electric cars.
And if that does not work, it raises the transition to the electrification of walking on foot that has been so far. “Skepticism about Tesla’s ability to meet the huge demands of mass production is extremely high. Virtually no one believes that musk will be able to meet the benchmarks it has set for model 3.
The price of Tesla was violently over the past week, losing almost 20 percent of its value, while Wall Street analysts predict that the demand for the other two vehicles currently Tesla Model S and model X, which has already reached its peak. Other experts say that musk will cut costs by 60 percent. 100 if you want Model 3 profitable.
And then there is the fact that it starts the automatic majority in the 20th century ultimately failed and fell into the dark. Tesla, a 15-year-old company, may be ready to challenge these opportunities. The challenges of production and the quality of starting a new rental company are titanic.
“Model 3 is essential to Tesla’s sustainability,” said Karl Brauer, executive editor of Kelley Blue Book. “The company was never there for almost 15 years, but it had benefits. Model 3 will be Tesla’s first attempt for a high-volume car for traditional consumers.
If Tesla can satisfy the demand of restriction model 3 with a reliable and profitable vehicle, it over time justifies an action of value that rivaled GM in the value of capital. If it can not, Tesla will confirm the suspicions of many criticisms that it has never had a truly sustainable business model. ”
The valuation of the Tesla sky – which has just surpassed BMW’s market capitalization – depends heavily on the ability of musk to sell its vision of sustainable behavior and battery to a much wider population. The Model S and Model X are extremely expensive.
Even with tax incentives, the two cars easily push $ 100,000. Model 3 will start at $ 35,000, making it the cheapest in the Tesla range. So that Tesla can sell 10 times more cars today, you need a much cheaper car.
But the market for affordable electric vehicles is suddenly much more crowded than it was when the model 3 was first announced in 2016. GM has been able to enter the first buyer state when it published the Chevy Bolt a $ 36,620, 238-miles per charge, electric vehicle, in December.