Tesla Motors To Roll Out Model 3 Sedan In 2017

The CEO plans to roll out the new electric vehicle in 2017 - as its major competitor General Motors shows off the new Chevrolet Bolt.

At the Consumer Electronic Show, General Motors showed off its high technology electric vehicle, ‘Chevrolet Bolt’. Comparatively it is putting a lot into this new automobile while will start production sometime next year. The idea behind the latest Bolt is to compete with Tesla Motor’s Model 3 Sedan, which is also expected to roll out sometime in 2017.

According to GM, the new Bolt will be offered for $30,000 with a 200 mile range (after income tax reduction). The chairman of GM, Mary Barra talked about Tesla’s ‘limited retail network’ however she emphasized of the novelty of the auto maker along with the value that is created by the company for its customers.

In the United States, automobiles are mostly sold with the help of auto dealerships while the largest automotive and energy storage company has its exclusive stores. The independent auto-dealer revealed the Model 3 Sedan’s prototype earlier in March which according to the company will cost about $35,000. In the past the automobile organization has had no trouble in working and manufacturing cars that can be driven by drivers but making an entirely electrical car will mainly highlight the areas where the motor giant has always struggled.

One of the areas where the auto maker mainly struggles is with its production capability. Earlier last year, during the third quarter’s earnings call, Elon Musk, the CEO stated that the novel vehicle will be made available in a time span of two years. That being said, only about 507 vehicles of the Model X were produced by the fourth quarter whose idea/concept was unveiled three years prior to the production. For the Model 3, Tesla will need to increase its pace in terms of production since increased competition is on its way. On the other hand, it will have to sell its Model3 for a profitable and competitive price, since it only sells luxury cars.

Additionally, Tesla Stock has been trading up by as much as 1.50% at $218.88. During the session on January 8, 2016, the stock was seen hit a high of $286.65 and a low of $181.40; and kept fluctuating between the two throughout the day. The earnings per share was reported to be at $-5.32. Currently the market capitalization is at $28.24 billion.

Subsequently, it has planned to roll out over 500,000 cars per year by the end of 2020 and the sole thing that will be helping the company maintain its position in the EV market will be the Gigafactory is building in Nevada. Along with providing batteries to the automobile maker, it will help with the economies of scale that will ultimately lead to increased profits.