Tesla 3- A Better Value for Consumers

The electric vehicle manufacturer Tesla has just announced that they plan to release a new model of electric car, the Tesla 3, in the future. The Tesla 3 is set to retail at approximately $35,000 and offers a range of up to 200miles. This has the potential to greatly impact the automobile industry. According to a recent article from PC Mag:

The real question is, can Tesla build and sell a 200-mile electric car at $35,000 profitably? If it can, it would significantly impact the auto industry. A smaller, $35,000 companion to the Model S would position the Model 3 against a slew of so-called near-luxury cars—most notably the BMW 3 Series, as well as the Audi A3 and Audi A4, the Mercedes C-Class, the Lexus IS 250, and new Acura TLX.

That’s still not quite mainstream vehicle territory—the average sale price of a car in 2014 in the U.S. is roughly $31,000, and most mainstream sedans sell in the $25,000 range. Think either loaded Civics and Ford Focuses, or modestly equipped Accords and Camrys. But it’s within striking distance, and not at all unreasonable for such a technology-infused vehicle.

As is stated, if Tesla is able to deliver on their promise of a $35,000 electric vehicle they will be able to provide strong competition in the marketplace. Further, as the PC Mag article fails to mention, the U.S. Government offers a $7,500 rebate to any consumer who purchases an electric vehicle. This makes it so that the price of the new Tesla 3 would actually be significantly less than many of its competitors. Also, considering the fact that the Tesla does not require gasoline, the long term costs of this model can also be less than that of its competitors. Therefore, while there is still some time until its release, the price point of the new Tesla 3 may be one of the biggest factors that pushes more of the general public towards owning electric vehicles.

Read More- “Tesla’s $35k Model 3 Targets BMW 3 Series” (Jamie Lendino, PC Mag)

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A rising senior at Colgate University, John is currently working as a research fellow with Consumers' Research.

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