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Tesla has long termed its electric car model 3 which would bring electrical driving to the masses. And today, a year and a half after the launch of the sedan, it finally began to be sold at a price comparable to that of the price. The CEO, Elon Musk, has been promising for years: $ 35,000.
"Since we created the company, it has been the goal forever," said Musk during a phone call to the press. When the car went into production in July 2017, Tesla proposed only one long-range variant, priced at $ 56,000. Until today, the cheapest version available has started at more than $ 40,000.
Of course, $ 35,000 is not a magic number, but officially the Model 3 is the most affordable full-range electric vehicle on the market. (According to Kelley Blue Book, the average EV costs about $ 60,000). Tesla slides into the bolt of the Chevrolet Bolt, which offers a range of 237 miles and a starting price of $ 37,500. (It is interesting to note that the price of both cars has increased in one direction: Tesla and General Motors are losing access to the $ 7,500 federal electric vehicle tax credit, after applying it to more than 200 000 cars have also joined forces to lobby for a change in this ceiling.
From now on, the $ 35,000 car will be the base version of the Model 3, with a range of 220 km, a top speed of 130 km / h and a time of 0 to 60 km / h in 5.6 seconds. Musk also announced that Tesla is introducing a new version of the car called Model 3 Standard Range Plus, which will feature an improved interior, can reach 140 km / h and run from 0 to 100 km / h in 5.3 seconds, and run 240 miles between two load stops. . It will start at $ 37,000.
The price reduction on the sedan means that Tesla has to cut elsewhere. The company also announced the transfer of its sales process entirely online. In doing so, many of its stores will be closed, resulting in job cuts and cost savings. "I'd like there to be another way to do it," said Musk. "It's a binary choice: a $ 35,000 car and fewer people, or not a $ 35,000 car." The remaining stores will remain "galleries" and information centers.
Customers can no longer test their cars, Tesla expands its return policy to allow returns after a week, in case buyers do not like it. Musk promised that it would be very easy for customers to request a refund. (This has not always been easy in the past.) Going online also helps Tesla operate in states with franchise laws that require cars to be sold through dealerships. Plus, that's how people work now. "It's 2019," said Musk. "People just want to buy things online."
Tesla, however, will add an indeterminate number of jobs in its service centers. (Last week, Consumer reports announced that it would no longer recommend Model 3, due to reliability issues.) "I really have this year's priority goal of making the service outstanding at Tesla," said Musk.
Another big change: buyers can (again, after a break) buy Tesla's "Full Self-Driving" option for $ 5,000 more, a promise that Musk promises to be "complete" and ready to be deployed by the end of the year. The problem is that the company's vehicles still do not drive alone. Today, the "autonomous driving" feature includes Tesla's new "Navigate Autopilot" feature, which allows the vehicle to change lanes and take the highway interchange by itself, an automatic parking feature and the "Summoning" feature, which Tesla promises your car to find you anywhere in a parking lot. However, even when the capabilities are deployed, drivers will still have to closely monitor their vehicles during the execution of these "driverless" maneuvers, adds Musk – a choice that some in the industry consider risky . While the autonomous vehicle community is becoming more and more bearish with respect to technology, Musk says the truly self-contained feature, which will carry its drivers anywhere, should be complete by the end of the year. of 2020.
Although Musk said he does not expect to make a profit in the first quarter of this year (after the third and fourth quarters of 2018), having a car at this price level is a sign that Tesla is confident of being able to master costs while producing 7,000 or more models per week. This type of manufacturing requires careful control of costs and supply chains. "I call it a slot game, like a Game of throneswith sous, says Musk. Staying at the top of this ladder will be vital, knowing that Musk has stated that he expects the demand for Model 3 to hover around half a million cars a year, while recognizing that this is based on only on an "instinctive feeling".
Reaching $ 35,000 was a long journey through what Musk called "the hell of production," including an unsuccessful attempt to use factory automation on a scale unprecedented and building cars in a tent. Meanwhile, Tesla and Musk fought other fires: an ongoing battle with the SEC, shareholder lawsuits and critics that it markets its autopilot function as being more performant that she is in reality.
Although Musk is always quick to make bold promises, he said Model 3 will not be cheaper from here. Of course, he also promised that future Tesla models would cost less – the Model Y SUV could debut this summer. And these could hit the road in just two or three years.
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