Tesla and Its Entry Into the Affordable Car Market

February 17, 2016

Tesla Motors, Inc. the California-based automotive and energy storage corporation that designs, manufactures, and sells electric cars and their related products, continues to make its entry into the affordable car market with its next car. Interested individuals can pre-order the car next month – by March 2016 – with the reliable information that it will have a $35,000 price tag before incentives.

This was announced by Elon Musk, Tesla’s CEO, himself to Bloomberg.

Automotive industry insiders predict that the tax credits for the purchase of electric vehicles may likely drive the price down, too. The net price may even be lower than the average cost of a new car in the United States but there are challenges to it, too. The Model 3, after all, will not be in production until 2017 and, in case of delays in production, the current incentives may not be available during its release.

As of press time, the national average for electric car incentives is $7,000 while the average car price is $31,000 – and, thus, the Model 3’s price could be substantially lower.

Tesla’s entry into the affordable car market may come as a surprise to many consumers considering its first models. The Roadster, its first model, was a luxury electric car with a six-figure cost while its Model S sedan, its second model, has a base price of approximately $70,000 – truly, not the kind of cars that the budget-conscious aspiring car owner in America can afford to buy.

But Tesla has always had always set its sights on the average American consumer instead of the early adopters of electric cars and the uber-rich car collectors with money to burn. The publicly-traded corporation wants the mainstream buyers to actually purchase its cars, which means a larger market share in the worldwide auto industry. This vision was already written about by Sonari Glinton in 2012.

In March 2016, Tesla is expected to reveal the technical specifications and design aspects of the Model 3.