Tesla Motors, Inc.’s TSLA long-awaited Model 3 was unveiled in California amid massive fanfare last night. The hysteria among fans and long lines for pre-orders reminded one of Apple Inc.’s AAPL product launches. Such level of excitement for a product launch is unheard of in the auto industry.
Model 3 is a four-door, five-seat electric sedan with a range of 215 miles per charge and acceleration of 0–60 mph in less than 6 seconds. It is equipped with Tesla’s Autopilot hardware, has both front and rear trunks, and is expected to obtain five-star safety ratings. The $35,000 car will be produced from late 2017
Tesla opened bookings for Model 3 on the morning of Mar 31 and pre-orders crossed 138,000 units by the time the launch event ended that evening. This figure is even more impressive when we consider the fact that Tesla has sold around 107,000 units of all its other cars combined, so far, per Bloomberg, while Nissan Motor Co. Ltd. NSANY sold only 200,000 Leaf EVs in five years, per Forbes.
Needless to say, this is a matter of concern for other automakers. General Motors Company’s GM Chevrolet Bolt, to be launched later this year, has often been compared with Model 3 as both electric cars have similar range and pricing.
Nissan’s Leaf EV, Ford Motor Co.’s F Focus Electric and BMW i3 are other electric cars with similar pricing, but lag in range. Apart from electric cars, Model 3 is also expected to capture market share from internal combustion engine cars in the same price range, such as the Audi A4 and BMW 3-Series.
While other cars with similar price range might offer comparable features, none have been able to garner consumers’ attention like Model 3.
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