Here's what Tesla has planned for the future.
Tesla Motors Inc. has recently unveiled the Model X which is a premium priced car. The vehicle was appreciated by consumers and critics for having a beautiful design along with top notch engineering. However, the price has yet to be a controversial subject. So now the company is targeting the “mass market Model 3 vehicle”. This new electric car is likely to be a game changer since it is likely to overcome the present losses so that it ultimately paves its way to churn profits.
Initially it was stated that the launch of Model 3 will actually take the company to the last phase of its development life cycle. JB Straubel, chief technology officer at Tesla mentioned in a statement that the company’s employees are not critically monitoring Model X or Model S electric car at least these days. The reason behind streamlining its focus was to deploy all expertise on Model 3. At this point, it is early to say whether all the Tesla employees are concerned about Model 3 or it is getting the special attention of the development team.
TSLS has undoubtedly succeeded in capturing a fair share in the electric car industry. However, the issue they are facing has either not still experienced high sales. The reason behind this is its skyrocketing prices. Model 3 is likely to get a price tag of $35,000 which in comparison is budget friendly.
The company at this point is also working towards developing its Gigafactory that will have a huge assembly line that will have the power of producing almost half million vehicles per annum. By early 2016, the factory will initiate the production process. As of now, the company is producing almost 10 percent less than their annual estimation which is about 500,000. The targets for this year to produce 50,000-55,000 cars will be achieved due to slow production although the company has tried its best to increase the trend of EV cars.
Apart from that it is also stated that Tesla Motors has also established a new paint shop that can accommodate 500,000 cars per annum in order to ensure smooth production. If the arrival is delayed by the Model 3 then the fixed cost will increase acting as a barrier in terms of profitability. Moreover, the company is also making various network charging stations across the globe that will cater to the increase in the demand for Model 3 by consumers.
Tesla upcoming Model 3 line-up to boast of a crossover.
Tesla Motors Inc. does not really say much when it is about the mass market of their Model 3. But, the firm’s chief technical officer, Mr. JB Staubel has unveiled certain details regarding third third-gen vehicle. According to the Wall Street Journal, the electric car manufacturer will launch the Model 3 that will be under the crossover and sedan category where he claimed that it is not a conventional car model.
As reported by Market Watch, the EIA Energy Conference which took place on Monday showcased the Model 3 portfolio as “cars beyond”. According to the company, Tesla has forecasted that almost one million vehicles will make their way to the roads by the end of this decade. Moreover, the company has plans to touch 0.4 million EVs when it comes to the annual production capacity.
Wall Street Journal reported that Mr. Straubel believes that the EV technology will play a substantial role in shaping the future of the automotive industry. It is likely that the battery-powered vehicles “will become the predominant and primary fuel for light vehicles,” and thus it will allow them to match the “internal combustion engine (ICE) systems’ potential.”
In order to make this happen, the company has started to work on their Gigafactory. This is a venture worth $5 billion that showcases lithium ion batteries. According to Tesla Motors, this factor will become the largest battery factory that is like to boost the costs of EV battery in order to make vehicles affordable.
This can be governed through the price of Model 3 which is said to be $35,000 before it was $75,000 tax credit reports the automaker. This actually means that great mart for the company’s EV’s prices will be lower than the price of the Model S Sedan.
Tesla Motors Inc. that is currently only selling the EV brand Model S now wishes to expand their portfolio. So in order to make this happen a crossover Model X is likely to be launched in the times to come. This rollout is expected in the coming three to four months. According to the up gradation of Model S and Model X, will help the company to gather their effort and launch Model 3 in the times top come.
However at this point, Tesla is maintaining its secrecy to hide its future projects but the future holds that the future of EVs is relatively strong and Tesla will have a strong position in the industry in the times to come.
