Tesla Motors on Friday (Australian time) unveiled the Tesla Model 3, the electric vehicle that it hopes will hit the “mass-market” and lifts its total sales to 500,000 units a year by 2020 – a ten-fold increase on its current production.
This was no April Fool’s release. It was actually unveiled at the company’s California headquarters in the evening of March 31 local time. The event was broadcast live on the net, along with an option to reserve a vehicle, even though it will not go into production until late 2017.
“You will not be able to get a better car for that price,” Tesla founder and chief executive Elon Musk said of the $US35,000 vehicle. And punters seem to agree. Musk said that 115,000 reservations had already been received in the first 24 hours, and that’s before any of them had seen the vehicle.
Musk said the company had slowly transitioned to low-volume, high price and high performance cars, to “show the world that an electric vehicle can be the best car”, through to an SUV and now, a lower priced high volume vehicle.
The Model 3 looks similar to the Model S, although it will cost less than half the price.
“It is very important to accelerate transition to sustainable transport,” Musk said in his opening remarks. “This is important for future of the world,” he added, pointing to record high Co2 levels in the atmosphere, a sharp rise in average global temperatures last year, and the health impacts of vehicle emissions.
Musk said the Model 3 will fit 5 adults. The instrument panel has been compressed, and the front seats brought “a little further forward”. The rear roof pane is “one big piece of glass”. And it will fit a 7 foot surfboard inside, Musk said. (Ed: My Peugeot 207 wagon fits a 9’6″ surfboard inside, I should point out).
The high efficiency electric motor provides zero to 60 mph (100kmh) acceleration in less than six seconds. It is equipped with electric all-wheel drive.
Musk said the development costs and learnings of the Model S and the Model X are key for bringing down the cost of the Model 3.
Tesla has sold 100,000 units of its upmarket, high-performance Model S sedan, and is bringing its vulcan-winged Model X into production as well. The Model 3 will be priced at $US35,000 in the US, less various tax incentives.
In Australia, the price has yet to be released, but given exchange rate and delivery charges, it could be less than $A50,000. A recent Australian Tax Office ruling allowing users to claim the full 66c/per kilometre travelled in electric vehicles for business use will also add to the economics of this and other EVs.
The Model 3 has already attracted significant interest in Australia, with hundreds of people queuing at Tesla stores in Sydney, Melbourne and Brisbane, even before they had seen the design and features of the new vehicle.
By the time production of the cheaper Model 3 is in full swing, Tesla’s so called “gigafatory” in Nevada will be in full swing, producing battery storage for its EVs and for household and grid applications. In 2012, when the Model S was released, production was just over 3,000 vehicles.
The company now has 3,600 superchargers world-wide, and this will be doubled by the end of next year, Musk said, and the number of outlets will also more than double that to 441 locations.
Giles Parkinson is founder and editor of Renew Economy, and is also the founder of One Step Off The Grid and founder/editor of The Driven. Giles has been a journalist for 35 years and is a former business and deputy editor of the Australian Financial Review.
Hmm, not a massive fan of that squished nose.
I think we are just so used to seeing a grille that the future looks a bit strange. I also think that the conventional auto world is on notice today. This is an iPhone moment and if you miss it you will be the Blackberry or the Palm of the car industry. I just voted with my credit card. Supercharging and autopilot for the base price – I didn’t see that coming.
It’s the shape I’m not a huge fan of, if they curved off that lip it would be fine. Having now seen videos of it I’m not as fussed though
Beautiful shape from the side. Good size. Nose a bit weird – maybe to get crush space? Nice interior, good screen, and heaps of glass. Autonomous fitted, even if not optioned. Suspecting $60ish on road, minimum. Exciting!
Will be less than that
Nope. AU$60k, on road…
Way to go! 115,000 pre-orders in 24 hours for a car that nobody has even seen. They must be doing something right…
It is also $US 115m in income with still a year or so before serial production begins. Maybe Tesla should get cracking starting some factories in Europe, batteries and cars?
They already are, have a look at http://cleantechnica.com/2015/02/19/german-gigafactory-ground-broken-europes-soon-largest-battery-factory/
Close to 200k orders now.
Pig nose. Not for me.
It is the technology hint
Like what?
EV is more efficient.
Cost of service like zero
Life expectancy of the motor about 50 years
Replacement of batteries in about 8 years way less than at present.
So which part of the story is a question
Yeah but none of these technologies has got nothing to do with the pig nose!!!
I can see some DRL lights going in a hollowed-out nose … probably going to be another energy load, though.
I’m sure you’ll be able to buy a range of stickers to put on the nose to give your vehicle that custom look.
A nice AC style radiator grille would really set it off (yes I know it doesn’t need one). I wonder if it emits any pedestrian warning noises and what the options are.
I thought same but i wonder if they want people to know “at a glance” what it is.
You would know immediately it is a tesla 3 in your rear view mirror.
So perhaps this is a deliberate and calculated design addition – or subtraction in this case
And/or a marketing move as they can always up sell as an option a sexy front face body kit so people know also immediately you don’t have the “poverty pack” model.
Ah but it could use one. A good place to put the cabin AC condenser.
The Clean Disruption rolls on over the internal combustion engine and all who drive in her!
I don’t regard up to $70k as “mass market”.
Perhaps in the $50 plus range
$30k tops
$46.6 at present exchange rate
However lets see where the AU dollar goes in a year
It will save the average person ~$3,000 in fuel costs per year, so if you keep a car 8 years you can effectively subtract ~$24,000 from its cost when comparing it to petrol vehicles.
Driving 10,000km, we only spend around $850 per year on fuel. Who is spending $3000 on fuel? People with a V8 and driving 30,000km?
People commuting who have to sit in traffic, even in a small car, can easily drop $30-$60 a week on fuel, depending on length of commute and size of engine.
Working 48 weeks a year gets you to $1500-$3000 in fuel at a basic level.
That excludes any extra travel like the occasional road trip or day trip.
Me either.
Prius is a waste of time and too expensive, so is Chevy/Holden Volt.
BMW i3 is a joke at 160km range and is ugly as a hatful.
The Model 3 isn’t trying to be a budget car – it is positioning itself in the small luxury area to complement it’s big brother.
Like all things, market pressure and more/better R&D will bring price down as companies transition to EV. Scale is the thing.
I so wanted to watch the video and i was busy servicing my small EV
does anyone know the link to the announcement ?
ok look at post above for link
$50k or less landed in Australia
With out a doubt a good buy
Mind in 5 years will be $35k
If ever you see a CEO who undersells it is Elon honestly
watch the launch
http://www.theverge.com/2016/4/1/11343874/tesla-model-3-announced-video
He’s a pretty understated guy by the looks. Not much of a showman, lets the product do the “ooh” and “aah” while he presents the facts.
Exactly Elon does not overstate the product he just let it sell it self rather refreshing really.
This car is right in the middle of the USA cost for a vehicle.
The fact it is so cheap to service is going to cause major disruption to the present business model.
Have you not noticed even the major manufacturers are now getting into the market because they are not stupid they see the writing on the wall and it all says old business model is not going to work in post 2020.
We have been debating among friends and wondering when the US and/or OPEC will sabotage the EV growth to prevent stranded oil assets.
Nothing has happened yet so we are still waiting and wondering if perhaps the rise of the EV is simply unstoppable ?
Is the next revolution going to be going off the electricity grid anywhere enough solar panels can be placed to power the house and car?
Autonomous vehicles powered by autonomous power sources
The autonomous era
They are now in the state of denial “No, never gonna happen.”
http://www.energypost.eu/bps-view-electric-cars-looks-unrealistic/
The Koch brothers are already working against EVs. They are terrified of their impact on oil sales.
I think they already are – part of the reasoning for the low cost of oil at the moment has been reasoned to `Maintain Market Share’ or in english – keep the price down low to destabilize the US attempts to be more energy independent and slow the uptake of electric cars.
But I don’t know if their heart is really in it.
The Saudi’s setting up their future fund sends a strong message that peak oil has been reached (without them publicly admitting it) and they want to wring out what they can while they can for as long as they can. (Cos they can can caaaaan!!) Sorry.
The rise of the electric car I think is unstoppable. It hasn’t happened here yet because, well, there’s our dick head government but Aussies are very good at spotting a good deal. So when the cars drop more in price and the recharging infrastructure begins to seriously roll out then I reckon we’ll see more EV’s on Aussie roads. However if the tech I’ve read about in the labs (in Australia, Singapore for instance) where cars will be able to be recharged in several minutes and hold the charge for up to a week then that will be the end of petrol and diesel cars within the decade world wide I reckon. Though I am by nature an optimist.
At 75c in dollar 50 k is less than $47k Au
135k orders, and still going, I see…
135001
I’ still hanging out for practical sub $30k electric car that would replace the current basic 1.6 litre 4 cylinder hatchback we currently drive. I need reasonable rang given the almost total lack of charging infrastructure here, but I have no need for the sports car performance. I guess i will have to wait for the Koreans or Chinese to produce it. It certainly will never be made by the Australian car industry dying of irrelevance.
The Nissan Leaf is at 110+ miles of EV range already, with a 200 mile version already on the way. The higher model fast charges a shade slower than the Tesla, but at about 3 miles a minute. Depending on where you live, you might get upwards of $10K of tax credits, which applies to lowering a lease price too, if you can’t claim that all in one year.
That sounds it like that might be the car for you.
The Nissan Leaf is a shade over $50k in Australia which is already getting in ti the luxury car range and, with a federal government that believes “climate change is crap, there no tax credits here. There seems to be an “Australia tax” on electronics, software and it would seem imported cars that doesn’t seem to apply is the USA.
Hi Jennifer, the real price for a ‘new’ Leaf is more like $35,000 as there are a number of unsold Leafs with 2 or 3 year old compliance plates. For example http://www.carsales.com.au/dealer/details/Nissan-LEAF-2012/OAG-AD-12484780/?Cr=3
If you are serious and OK with an the older plate and limited range of the Leaf you can go electric now.
It’s all true what Mark says Jennifer. I’ve been looking as well and there are cars around the 35 to 40k or so mark for sale.
I live in Port Stephens in a little place called Anna Bay and theres a bloke down the road with a Leaf he picked up for 40k.
Best purchase he ever made (I bailed him up in a shopping centre car park to chat with him) He drives about town and the odd trip to Newcastle for nothing. He has another car for longer trips to Sydney etc but for the day to day he uses his Leaf and with his solar panels, it costs him next to nothing to run.
Jennifer, the LEAF is $AUS 40k on road. (It did come out at $52+on road costs). Good luck getting one though. Almost none in Australia left to sell.
I believe the Leaf is $39,990 drive away. It was over $50k when first released in 2011, but the price was dropped to $40k a couple of years later
Forget comparing the car to anything. It is a class on its own. Pig nose or not; I love what it stands for… and hope I can buy a Model III one day. 🙂
Important detail:
Musk said, “the model 3 will have a minimum of 215 miles or 346 km range, and that is a conservative number.”
That’s much better than all other EV’s on the market at the moment.
Except that the Chevy Bolt is going to beat it there. 220 miles of range by the beginning of 2017 will hit the market before Tesla. Not as snazzy, but zero to 60 in 7 seconds is damn good. And hatchbacks are more practical.
It is great to see traditional manufacturer’s respond.
It will be interesting to see if Australia is going to get quantities of the Bolt and what the charging infrastructure is like. A big concern I’ve got is not only ubuiqity, but compatibility, between manufacturers. I’ve not looked into that.
The BBC reports for the Bolt “more than 200 miles (322km) on a full charge and a 60kWh lithium-ion battery.”
Comparing the two shapes I doubt that the hatchback Bolt will be roomier and that it will have more storage space.
wait 30 min to reload. electric battery dies a few years later. nope
You drive your car 24 hours a day? You never stop on road trips to eat for 20-30 minutes?
These batteries are showing they can handle upwards of 5000 cycles. Pay attention. You’ll end up being left in the dust.
excellent, one less person in front of me in the 250,000 person queue 18 months out from release. If you don’t have a 20-30 min break every three hours of driving then I just pray you’re not driving anywhere near me.
I’m in front of you na na, na na
“price of only $10,623 for Nissan LEAF S after tax credits and incentives, demand quickly exceeded expectations.”
http://blog.rmi.org/blog_2016_03_25_electric_vehicles_bulk_discounts_boom_sales
Here’s the best bit: We can’t afford to replace all the ICE vehicles in the world with electric without a massive consumption of energy and resources.
As usual, Elon Musk thought this through and came up with yet another elegant solution…The skateboard.
http://www.caradvice.com.au/429113/tesla-creates-diy-supercar/
If other manufacturers adopt this approach, we have a win/win.
There are also many small cars ideally suited to electric conversion for around 20-30k.
This will soon become a major industry.
Australia’s car industry could produce the Tesla Model 3 for the Asian market.
A little hint Mr. Turnbull or Mr. Shorten, be “innovative” and make it happen!
Labor cost might be too high here as our existing automotive industry showed.
We should, however, look to capitalise on the R&D we can perform here to make our patents and IP as valuable as possible, and license them. If the gutting of institutions like the CSIRO and ongoing mining subsidies could be wound in a little, it could get us through the downturn that is coming.
The government just hasn’t got its head out of its bum on mining yet, because they’re hip-deep in lobby money
Giles, 7 feet of surfboard is plenty. Only lazy paddlers need 9ft 6.
And beginners like me..
Go the 7S superfish if you’re a beginner and will comfortably fit in Model 3 without roof racks.
horses for courses. 7′ won’t get you far in these parts, Tristan. gotta learn to glide the wave, not to fight it! besides, i’ve trimmed down to 9’5″.