The company is planning to build about 500,000 cars by 2018.
Over half a million Tesla enthusiasts have put down a £1,000/$1,000 deposit to reserve a Model 3 since the pre-orders began in 2016.
Model 3 owners will not get free access to the Tesla Supercharger high-speed charging system, with the company planning to charge for electricity as demand grows and it requires more investment to build up the network of chargers. The company has said the vehicle will not offer the performance and features found on its high-end cars.
The Model 3 has always been part of Palo Alto, California-based Tesla's plans. Despite the big event on Friday evening, Tesla's stock is down about 3.60% so far this week. The Model S still may offer other features that will sway buyers willing to accept less range at a higher price, but the potential for some cannibalization is clearly there, Sacconaghi wrote. But it will face a serious challenge, Musk acknowledged, boosting production at the Tesla plant in Fremont, California to the point where it can roll out the promised 500,000 vehicles next year. With the Model 3, they hope to become the pacesetter for the market. For those visits, 30 percent couldn't get an appointment within 10 days, and 22 percent didn't get their problem solved the first time.
Those investors who have bought into Tesla's long-term plan have largely ignored the massive losses the auto maker has posted almost every quarter, indicating that CEO Elon Musk likely has a very long rope courtesy of his investment base to do what needs to be done to create maximum long-term profitability. Tesla reported a loss of $1.61 in the year-ago quarter.
"It was never our goal to make expensive cars".
Until now, Tesla has operated as a niche producer of luxury electric vehicles, with a charismatic, showman CEO who regularly interacts with fans on his Twitter account.
For its part, Tesla recently announced plans to adds dozens of new service centers around the country, as well as mobile vans that would go directly to a customer's home or workplace to perform service and repairs. When it comes to conquests from other automakers, the study shows that Tesla owners are most likely to be current or former BMW owners. For the style conscious, there's always the S and X, provided they're willing to pay the much higher price.