Sightings of Tesla’s Model 3 near Silicon Valley and the company’s Fremont factory has become all too commonplace in recent weeks, but a new set of high quality photos showing a silver Model 3 Supercharging at the popular Harris Ranch station gives us a first look at Tesla’s upcoming mass market sedan midway between San Francisco and Los Angeles.
The Harris Ranch Supercharger off of Interstate 5 in Coalinga, California is one of Tesla’s busier charging stations, strategically located roughly 190 miles in either direction between the two major cities. It’s also home to the now shutdown Tesla battery swap station.
Redditor WattLOL and Tesla owner recounts being at the Harris Ranch Supercharger when they spotted a gorgeous silver Model 3 release candidate also charging. They posted a series of very comprehensive and high quality photos of their Model 3 sighting as follows:
WattLOL‘s photos also reveals Model 3’s large swing-up style door for the charge port. Quite noticeable is the expansive area behind the door that’s allocated to a relatively small Tesla charging plug. The larger surface area is likely designed to accommodate different charging standards that may utilize larger plugs such as CCS and SAE Combo.
Thanks to these fantastic photos of the courtesy of WattLOL, we also get a good look at one of Model 3’s wheel design. Tesla CEO Elon Musk announced during the company’s recent 2017 Annual Shareholder Meeting that the initial launch of the Model 3 Design Studio will include very few options. Model 3 buyers will be given the option to choose from paint color and wheel size.
Arguably the most sought after photos of the Model 3 are ones showing the center touchscreen and steering wheel. Teslarati provided a first look at the Model 3 release candidate dashboard, but unfortunately this most recent set of photos reveals a purposely covered steering wheel and center display, by the driver. One can see what appears to be a Tesla jacket hung over the center-mounted display. We do however get a good look at Model 3’s glass roof.
First deliveries of Model 3 will take place in July, likely during the upcoming launch event. Tesla will initially produce a single motor rear-wheel drive Model 3 before introducing a dual motor variant in early 2018. Though Tesla has yet to discuss battery options for Model 3, inside sources have revealed to Teslarati that Model 3 will come equipped with a base 60 kWh battery that’s rumored to have a 250-mile range per single charge, and a 75 kWh pack that will likely top 300 miles of range.
The post Tesla Model 3 spotted Supercharging midway between SF and LA appeared first on TESLARATI.com.
New photos have surfaced on Reddit of the Model 3 at a supercharging station. Unlike past photos, these show the Model 3’s charging screen and several crucial details around the vehicle. The Tesla engineer driving the test vehicle didn’t seem to mind photos being taken and even mentioned that they were driving the vehicle home for the night. Take a look at the different photos and features below.
The Model 3 was seen with full autopilot hardware and this close-up of the front-facing cameras. The Tesla vision system looks nearly identical to the current Model S and X system, but with a new rain sensor added (top right sensor). The Tesla Model S and X previously had rain sensors like this one, but disappeared with the Autopilot 2 hardware.
This is one of the first great images of the Model 3’s seats and roof. You can clearly get a sense of the vehicle’s headroom and the thickness of the center roof panel, which looks thinner than the Model S/X’s. It’s unclear from the photo if the headrests are adjustable.
Nothing much has changed with the Model 3’s simplistic steering wheel design. It’s still unclear which controls the scroll wheels activate since there isn’t a screen in front of the steering wheel. It’s worth noting that the center console area looks well thought out, compared to the Model S’s lack of a center console at launch.
Now for the most important photo out of the bunch, the charging screen. The screen clearly shows the vehicle’s charge level at 95 miles and was charging at 169 mph (worth noting that the stall next to the Model 3 was drawing power as well). After taking a closer look at the vehicle’s charge level, it looks to us that this particular vehicle has a range over 300 miles (312 miles to be exact). Sources at Tesla have previously told us that the Model 3 will launch with 60kWh and 75kWh batteries, so it can be assumed that this vehicle was equipped with the larger 75kWh battery.
This charging screen should also give Model 3 buyers a good sense of the layout; we have previously seen photos of the Model 3’s center screen, but with far less detail. The controls at the bottom of the screen appear easy to reach, and the screen seems well divided from left t0 right.
This white Model 3 was sporting new gray/black aerodynamic wheels. The Tesla Model S briefly had an option for aerodynamic wheels, but Tesla didn’t offer the wheels for long. This picture also gives a great look at the camera/turn signal unit on the side of the vehicle, which is similar to or the same as the Model S/X’s unit.
While we have known the location of the Model 3’s charging port for a few months, this image shows Tesla’s new charging indicator. Unlike the Model S/X’s flashing indicator ring, the Model 3 sports a subtle glowing Tesla logo just left of the port. The photographer noted that the Model 3’s charging port pops open remotely, but doesn’t open all the way like the Model S/X.
Check out the rest of the photos below of the Model 3’s white exterior:
With Model 3 production kicking off and the first deliveries taking place next month, reservation holders are facing a question that has been too far off in the distance to ask until now: With 400,000 people holding reservations for a Model 3, when will I get mine?
At the top of the list are SpaceX and Tesla employees, who were given access to make reservations 2 weeks before the general public as a show of thanks for their hard work. This also helps keep the feedback loop for any early production issues as short as possible, letting Tesla fix the issues with minimal impact on the general public.
Beyond the employees, a number of factors come into play about when people can expect to get their Model 3. Teslanomics built a Model 3 delivery estimate calculator that takes several variables into account based on what Tesla has shared. Users can go directly to the tool and enter the following information:
Exact time the Model 3 reservation was made Whether or not the reservation holder is a current Tesla owner What battery size the Model 3 will have Rear Wheel Drive or All Wheel Drive Where are you located? The delivery estimator cranks this data and gives an estimate of not only when your vehicle should be delivered, but when production of the vehicle will start. The tool also analyzes the proximity to the Tesla Fremont factory for delivery time, with a 5 day delivery time for California customers and upward of 41 days for customers in Japan.
While these are just estimates, the tool takes the best available information about delivery prioritization from Tesla and gives reasonable estimates. Check out the tool over on the Teslanomics page and let us know when you are expecting your Model 3 to show up and how accurate you think the estimator is.
Elon Musk tweeted at a Tesla fan this morning who was begging for an end to Model 3 speculation that we would be getting news about the widely anticipated vehicle’s release this Sunday.
The tweet could be in reference to Sunday, July 2 being the day when Model 3 factory production begins, or, the day Musk will announce when the highly anticipated Model 3 final unveiling event will take place.
As we previously reported, analysis by Teslanomics shows that the introduction of the Model 3 in 2017 will single-handedly result in a 40% increase in US EV sales this year, so to say that news of its release will cause a feeding frenzy is an understatement.
Tesla Model 3 spotted for the first time in Los Angeles on June 26, 2017
The vehicle is expected to have roughly 400,000 pre-orders, and July has been pegged for some time as the month for big announcements regarding the much anticipated vehicle.
2017 will be a big year for Model 3, but the real action will ignite in 2018 as Model 3 production peaks. Several hundred thousand vehicles are expected to be delivered across the world by the end of 2018. Tesla has shared that it will produce roughly 100,000 of its Model S and X vehicles from its Fremont factory and another 400,000 Model 3s next year, which will dwarf 2017 delivery numbers in comparison.
Recent spy shots of Tesla’s Model 3 revealed the location for its retractable coat hook, dome lights and a glove box button.
Teslanomics wisely played off the consumer desire for this product by creating its own delivery estimation calculator. Users can go directly to the tool and enter information including the time of the reservation, where you are and if you are a current Tesla owner.
The delivery estimator crunches this data and gives an estimate of not only when your vehicle should be delivered, but when production of the vehicle will start. The tool also analyzes the proximity to the Tesla Fremont factory for delivery time, with a 5 day delivery time for California customers and upward of 41 days for customers in Japan.
While we appreciate the efforts and analysis, we know that nothing is quite as satisfying as words from the man himself. We will keep our eyes on Musk’s Twitter feed, so keep checking Teslarati for Sunday’s announcement.
Yesterday I spoke to BBC Newsday about the Tesla Model 3 and one of the questions they asked was “is the Tesla Model 3 a game changer”. Even before incentives the Model 3 competes with other entry level luxury vehicles like the BMW 3 series and Audi A4. With incentives it moves even further down-market, competing with big sellers like the Toyota Camry (the USA’s top selling car in 2016). That definitely moves Tesla into the mass market with a lot of opportunity to grow. There are some additional factors though that I think makes it a true game changer.
It’s already a game changer. Just over a year ago most automakers still dismissed Tesla as a niche manufacturer and articles still wrote about how electric vehicles were decades out or may never come to fruition. Then Telsa had almost 400,000 preorders for a vehicle no one had actually driven, most had only seen through their computer screens, and wouldn’t be available for over a year. I was one of those people.
Fast forward to today, with manufacturers practically falling over each other to announce their own electric vehicle programs and new targets. The discussion has flipped. Articles are no longer written about if electric vehicles are coming but how quickly. I think we have the Tesla Model 3 to thank for that.
Preorders are one thing, but can the Model 3 compete in a world of mostly combustion vehicles? That will depend on the value customers assign to it. My opinion is that Model 3 is the first lower cost electric vehicle to cross the ‘value threshold’. What I mean by that is that a buyer considering two vehicles in the same class and quality, one electric and one combustion, would chose the Model 3 over the combustion option. The Model 3 is just the better all-around car.
Consider the Chevy Bolt, a good car, but a more difficult sell on value proposition. Does it actually provide $37,500 worth of value to the buyer or could I purchase an internal combustion vehicle that provides me more value (as per classic capitalism this is largely ignoring the societal and environmental benefits to others, which can be difficult for most buyers to quantify – it’s not right, just reality).
The factors at play are complex, the initial purchase price, comfort, reliability, range, acceleration and speed, safety, handling, aesthetics, operating costs, convenience, and environmental impact. These all go into a buyer’s value calculation, mostly subconsciously. For me I can’t think of another vehicle that hits those categories as well as the Model 3.
Economics and Cost Reductions
Customer value is great but Tesla more than any other automaker needs to produce electric vehicles with a decent profit margin. It doesn’t have a lot of gas guzzling expensive SUVs to offset losses on EVs. Other automakers have claimed they are perfectly willing to make EVs at a loss, which seems largely driven by meeting emissions targets in key US states (California, Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island, and Vermont). That may also be why GM is pulling back on Bolt production, if they’re approaching their quotas in those states . In Ontario Canada, which has no such requirements, the Chevy Bolt is sold out until January 2018 and the only one available to test drive is at the non-profit organization Plug’n Drive in Toronto. A lot has been made in the past of Tesla’s business losses, but those include capital investments and R&D. They do in fact make a profit on their vehicles, but invest more money on improvements and expansions than that profit totals. Making an affordable electric vehicle at a profit is a challenge Tesla seems confident they’ve achieved. That’s a big deal. A game changer.
To be a game changer though the Model 3 can’t just be another lower priced electric vehicle. It has to be innovative and it is absolutely that. It will be using a new battery format, autonomous driving hardware, and it’ll likely be using Tesla’s newly optimized powertrain with 1 million miles capability + faster acceleration.
Tesla Model 3 prototype from the March 31, 2016 unveiling event in Hawthorne, CA
With those improved batteries and powertrain it should be one of the most efficient electric vehicles on the road. There’s also the Supercharger network which really opens up the options for long distance driving, more than any other manufacturer. These capabilities will set a new benchmark for affordable electric vehicles.
Tonight it will be very interesting to see what the final specs. Will anyone be able to match it? Let the (affordable) EV space race begin!
What do you think? Is the Model 3 a game changer and why?
Tesla has revealed that its premium Model 3 will cost $44,000 before tax rebates, a $9,000 increase over its $35,000 base price.
The announcement was made by CEO Elon Musk at tonight’s highly exclusive Tesla Model 3 Delivery event.
The base pricing with the standard feature sets goes for $35,000 and a $1,000 reservation fee. With this payment, you get a Model 3 equipped with Autopilot hardware, supercharging, seating for five adults, 215 miles per charge and my personal favorite feature: 0 to 60 mph in under six seconds.
As we previously reported, a Model 3 with a larger battery pack would cost around $42,000 to be profitable. The Model 3 premium price is $2,000 above that margin.
The Model 3 is a linchpin of Musk’s master plan. Musk said back in 2006 that Tesla would eventually build “affordably priced family cars” after establishing itself with more expensive vehicles. The flagship Model S for example starts at $69,500, almost double the cost of the Model 3.
The company started taking Model 3 reservations in March of last year and within a month, 373,000 customers had put down the $1,000 refundable deposit. Tesla hasn’t commented on reservation numbers since, but the company website says people who make reservations now should expect to get their Model 3 to roll up in mid-2018. As of tonight, it appears that at least 30 of the first customers will receive their vehicles and be able to take them home.
The Model 3 and its efficient batteries, even at the premium price, gives more people the opportunity to shrink their carbon footprint while driving in style.
It’s finally official: the Tesla Model 3 will feature two battery options, one with 220 miles of range and a second with 310 miles of range.
While Tesla CEO Elon Musk did not go into details of the battery pack, it is assumed that it will still utilize the company’s newest 2170 lithium ion cell. Musk did not disclose the size of the battery packs, just their range, performance and respective pricing.
As previously speculated, the Model 3 will be offered — before state and government incentives — at $35,000 with the standard range option and $44,000 if upgraded to the long-range option. As the newly affordable EV from Tesla, the Model 3 has taken its first step to cementing itself as the game changing electric car with the best technology, customer value and, internally, a vehicle that delivers high profit margins.
The battery range and power, and access to Tesla’s extensive Supercharger network could mean that the Model 3 will soon chip away at a market that’s been predominantly ruled by internal combustion engine (ICE) cars.
The announcement came as part of the Model 3 delivery event in Fremont, Calif. CEO Elon Musk told Tesla fans and future owners about the new battery and range options before handing over the first 30 Model 3s to their respective new owners. Musk stated that the company has produced 50 production cars this month, with the other 20 vehicles being used for validation testing.
With a design that is lightweight and sports an industry-leading drag coefficient, Tesla Model 3 could be among the most efficient vehicles on the road. The Model 3 will also be one of the lowest cost EVs, while sporting one of the highest ranges on the market. The Chevy Bolt, that starts at $36,620, tops out at 238-miles of range, while the Model 3 goes all the way to 310-miles.
If Model 3 production can match Musk’s goals, its price and technical capabilities could enable it to revolutionize modern transportation across the globe.
We’re bringing you a behind-the-scenes look at the Tesla Model 3 event from Fremont, California. Elon Musk is set to take stage at 9pm Pacific to deliver the final chapter in his original Tesla Master Plan – Use that (Model S, X) money to create an affordable, high volume car.
As we originally reported, Tesla has confirmed that accessing and starting the Model 3 can be done through the use of a keycard but also through one’s smartphone.
The Silicon Valley electric car company has ditched the ubiquitous Tesla key fob in the Model 3 for a pair of near-field communication (NFC) keycards that can be used for accessing the car. The cards are embedded with a tiny chip that acts as a digital signature for the vehicle. Since NFC technology generally has a limited transmission range of roughly 4-inches, Model 3 owners will be required to tap the B-pillar to unlock the door, followed by a tap between the front seats to start the car. This would explain why Tesla SVP of Engineering Doug Field was seen placing the keycard inside Model 3’s front cupholders.
Tesla has also incorporated a digital key that’s transmitted through a driver’s smartphone using Bluetooth LE, a low energy standard for Bluetooth that’s supported by most smartphones. Unlike Tesla’s current keyless entry system that requires drivers to access a sequence of buttons on its mobile app, Model 3 will use a unique bluetooth signal from your phone to unlock the car as you approach it, and start it when you get inside.
The decision to do away with the Tesla key fob that’s currently being used in the Model S and Model X is seen as a move that allows the company to further cut costs on Model 3 production, and reduce complexity wherever possible.
We’ve published the full specification list for Model 3 which includes itemized upgrade pricing for its long range 310 mile option.
With the final installment of the Tesla Model 3 release complete, Tesla fans everywhere are wondering if the vehicle lives up to all the hype.
Already Tesla has departed from conventional automotive norms: a keycard will be used in place of a key fob, an enhanced touchscreen display can control all aspects of the vehicle, and the battery range proves to be longer than competitors like the Chevy Bolt.
All the while, the Model 3’s initial price — one that makes all the bells and whistles mandatory for the first models sold — is pushing closer to the $50,000 mark as opposed to the $35,000.
So what do the experts who participated in Model 3 test drives think of the car that could change the automotive industry?
“Stab the accelerator and the car sprints like an Olympic 100-meter champion, thanks to the instant torque provided by its battery-powered electric motor,” wrote Marco della Cava for USA Today.
While the power impressed della Cava, the visibility also turned his head: a two-pane glass roof made it easy to see forward, backward and even upward.
Lance Unlanoff with Mashable had an excellent experience with his test drive.
“This is how an electric car should feel,” wrote Unlanoff. “Hell, this is how all cars should feel.”
He said the new dash system, which features only a 15-inch LCD screen, wowed him, providing excellent visibility and a comfortable feel.
“The Model 3 interior is like a cockpit from the future,” he wrote.
Unlanoff then adjusted the steering wheel using the LCD screen writing, “It was so cool and, I assumed, a more complex way of handling manual steering wheel adjustment. However, Tesla execs explained this takes fewer parts and is just another way they simplified production.”
MotorTrend fell in love with the Model 3 as well, saying the vehicle goes beyond the hype.
“The Tesla Model 3 is here, and it is the most important vehicle of the century,” wrote Kim Reynolds. “Yes, the hyperbole is necessary.”
The Model 3 has definitely made the splash Tesla CEO Elon Musk was hoping for. Based on these reviews, there’s no doubt that the vehicle shows the considerable promise of being the iPhone of the automotive industry.
The real work for Musk and his team, however, starts now. The tech mogul already compared Tesla’s current situation to “production hell,” and the next few months will prove whether Tesla can fulfill the second part of its promise: delivering the vehicle to hundreds of thousands of people.
The Model 3 has impressed, now can production match the hype?
The latest Tesla Model 3 reservation count pegs the number at 518,000 gross reservations and 455,000 units after cancellations. The latest number was confirmed by Tesla CEO Elon Musk during Wednesday’s questions and answers portion of the company’s 2017 second quarter earnings.
Musk noted that the net 455,000 Model 3 reservations occurred over the course of the year and includes Model 3 cancellations, but has continued to see net gains of roughly 1,800 Model 3 reservations being placed per day since last Friday’s Model 3 Delivery Event.
Up until the delivery event, rumors of Model 3 reservation counts exceeding 400,000 remained largely unconfirmed by the Silicon Valley-based electric car maker. Today’s announcement of 518,000 gross Model 3 reservations is inline with Musk’s “zero concern” that the company will be able to hit a production rate of 10,000 cars per week by the end of 2018.
As Tesla continues to build out Model 3’s production line at the company’s Fremont, California factory, actual vehicle production will follow a S-curve wherein a quick ramp up in production is followed by steady-state. This is then followed by another exponential ramp up in production.
Tesla unveiled over 30 production Model 3 vehicles on July 28 at its Delivery Event. The company expects to reach a production rate of roughly 5,000 vehicles per week by the end of the year.
The S-Curve: Tesla CEO Elon Musk is constantly referring to it, but what does it even mean? It could be the reason Tesla’s Model 3 revolutionizes the automotive industry.
The California-based electric car maker recently tweeted a visual representation of the S curve to make things clear for Tesla fans.
Essentially, the S-Curve is a production prediction that requires a company to invest vast amounts of money and resources at the beginning of production to work out the most efficient option. It’s about diffusion of innovation — as new ideas are tested, efficiency is reached, which leads to a higher volume of production.
As factory production ramps up, the low volume numbers in the beginning allow management to tweak and adjust logistics in order to create a product in the most efficient manner.
This requires time and energy, and results in a lot of trial-and-error for a company. As the company produces more of its product and fine-tunes its process, it becomes more efficient until it reaches full volume production.
Musk clarified further during the Q2 earnings report on Aug. 2.
“Model 3 drive units as well as battery packs made with our proprietary 2170 form factor cells are being built on new lines at Gigafactory 1. We are now fine-tuning these manufacturing lines to significantly increase the production rate,” Musk said. “We wish we could do all of this faster and get everyone’s Model 3 to them right away. It’s important to understand that our production ramp will follow an S-Curve, meaning that it will begin slowly, grow exponentially, then start to tail off once we achieve full production.”
These first few stages are the “production hell” that Musk nodded to during last week’s Model 3 delivery event. The S-Curve requires a patience that Tesla fans have learned to endure and skeptics on Wall Street have boiled about.
Melissa Schilling, professor of management and organizations at NYU’s Stern School of Business, recently told CNBC that the beginning of the S-Curve requires a company to pump a lot of money into their production line while getting very little in return.
As Model 3 production ramps up, it will reach full efficiency and tail off production increases will begin to plateau.
“As you start getting to the top, you’ve picked all the low-hanging fruit,” Schilling said. “Now (you) need to spend a lot more to get further.”
So as time moves on for Musk and Tesla, production will become more efficient and high-volume goals will be met.
It’s finally here! The much awaited Tesla Model 3 finally exists! Perhaps you were a little surprised and bummed (like me, admittedly) that you would have to wait even longer for the $35,000 base battery version. Perhaps you’re disappointed that the base model will not come with power seats or that in order to get a glass roof, you’re forced into premium interiors as well. Perhaps you’ve spent your time on Twitter, Facebook and online forums complaining about how you feel bamboozled and just can’t wrap your head around having to spend so much for the minimum amount of features you’re willing to accept.
If you are, let me break it down for you right quick. You cannot compare a Tesla to any other $35,000 car, period. Here’s why:
There are fundamental reasons why an electric car (or a car from any small car company) costs more to start. For one, you are trading a several hundred dollar recurring gas habit for a one time several thousand dollar battery pack. Secondly, you are comparing the cost of manufacturing for a company that makes millions of cars per year to one that has only made a fraction of that count. Those things aside, let me explain to you what you will be getting when you get a $35,000 base Model 3, and see for yourself whether or not these things should or do come standard in any other comparatively priced car.
Automatic emergency braking and collision avoidance 15” touchscreen Onboard maps and navigation Wi-Fi and LTE internet connectivity Remote climate control with app Internet streaming radio 8 year, 100,000 mile battery warranty (the most expensive part of the car) I haven’t gone and checked every car out there but let’s assume you’ve found an example that comes with all of the above and more. See for yourself whether any other car in that price range, electric or otherwise, can also claim all of these:
No haggle pricing Online ordering No up-selling of tire protection, undercoating or similar dealership options Peace of mind that parts and service will never be a profit center “Fuel” that costs a fraction of what gasoline does per mile No tailpipe emissions 0-60 in 5.6 seconds Over the air software updates and improvements Potentially mobile (come to your door) or remote service to correct problems American designed and manufactured No salespeople who work on commission A huge crumple zone making it exponentially safer in a frontal collision A rigid side frame making it exponentially safer in a t-bone collision While it’s tempting for first time electric vehicle consumer to compare it to a gasoline powered car, take it from me that you just can’t. You can compare the two no more than I can compare my $219.00 microwave to the $219.00 laptop that I recently bought my Mom. One will heat up my food and aside from having a built in timer that can be used when the device itself isn’t in use, has few other features. But it’s great at heating up my food. The other can play music, watch movies, store pictures, compose documents, connect me to the outside world and a whole host of other things. But man is that laptop is lousy at heating up my leftovers.
What else do you get? Cool factor? An American designed and built car? Let me know in the comments!
The EPA released its Certification Summary Information Report of Tesla’s Model 3, and it contains some new information on battery specifications and horsepower rating for the premium electric sedan.
According to the EPA filing, the long range Model 3 that’s capable of 310 miles per single charge uses a battery pack rated at 350 volts with a capacity of 230Ah. Multiplying the two figures together and we can see that Model 3 uses an 80.5 kWh battery pack.
Also seen in the EPA document via InsideEVs is a reference to Model 3’s 258 rated horsepower. It’s important to note that the performance figure is for the first production long range Model 3 which is equipped with a single electric motor and comes standard in a rear wheel drive only configuration. According to Tesla CEO Elon Musk, the performance variant of the Model 3 in all wheel drive is expected to arrive in mid-2018. One can expect a Model 3 “P” to have well over 400 horsepower in a dual motor set up.
InsideEVs notes that “although Tesla CEO Elon Musk previously stated that the Model 3 can’t fit more than 75 kWh of battery, his reference could’ve well been to useable, not max capacity of the pack, so the numbers still fit in with his past statement.”
The EPA Certification Summary report points to an “END-SOC” or state of charge level of 78270 watt-hours or 78.2 kWh of useable battery capacity.
The figures reported by the EPA have not yet been confirmed by Tesla.
All in all, it looks as if the Model 3 with a 3,837 pound curb weight (1,740 kg) will be one of the most efficient vehicles in modern history. You can read the EPA document in full here.
Following the trend of Tesla’s “rapid scaling” after the launch of its Model 3, CEO Elon Musk said he thinks demand could one day hit 700,000 Model 3 cars per year.
Musk made the statement on a call with investors to discuss yesterday’s bond offering news, according to The Street.
The EV CEO had previously pegged annual peak production estimates at around 500,000.
“They are constantly spending on the next big innovation, whether the public knows what that is or not,” James Albertine of Consumer Edge Research LLC told the news outlet. “The market should want to give innovative companies more capital as long as they perform, and Tesla is clearly performing.”
Musk aims to produce cars at a rate of 500,000 per year by the close of 2018. Last year the company produced 84,000 vehicles, a 64% gain from 2015.
This comes on the heels of yesterday’s news about Tesla raising capital through its issuing of bonds. The capital will be used for this exponential Model 3 ramp.
“Tesla intends to use the net proceeds from this offering to further strengthen its balance sheet during this period of rapid scaling with the launch of Model 3, and for general corporate purposes,” the company said in a prepared statement.
This is the first time the company is selling non-convertible bonds.
Tesla CEO Elon Musk has previously made statements about how the company would be enduring “production hell” in the near future, a reference to Tesla’s production S-Curve and the resources required to get the wheels turning early on.
The $1.5 billion bond can also be seen as part of the Model 3 S-Curve. The S-Curve, which features a diffusion of innovation and allows for a company to explore the most efficient way to make its product, requires big-time investment and resources early on.
Tesla had $3 billion in cash at the end of the second quarter and is expected to burn around $2 billion this year.
A video has been unearthed on YouTube that shows a Tesla executive in charge of the Model 3 production line giving a pep talk to Fremont factory workers before the Model 3 delivery event.
The person in the video appears to be Peter Hochholdinger, the long-time Audi exec that Tesla hired away to manage its Model 3 production line. Hochholdinger’s official position title is Vice President of Production at Fremont.
“There’s a lot of work in front of us, who’s scared about that?” Hochholdinger asks. No one raises their hands, and the crowd goes into laughter as Hochholdinger says “Good! Thank you!”
Joking aside, Hochholdinger had a more serious point he wanted his workers to absorb.
“Everybody in this company has to put his hands on this car,” Hochholdinger says in a clear reference to the teamwork it took to get the Model 3 from concept to car.
The video was posted by Like Tesla, a YouTube channel covering one family’s Tesla adventures.
Ironically enough, Hochholdinger’s pep talk came just hours before Musk’s mentioning of “production hell,” a reference to the company’s S-Curve. The S-Curve requires a patience that Tesla fans have learned to endure and Wall Street skeptics have spit bullets over.
The video also shows different Tesla insiders, such as our friend Ben Sullins of Teslanomics and Tesla owner parody fame, getting behind the wheel of the Model 3.
Tesla Senior Design Executive Franz von Holzhausen was also spotted talking to the crowd about the forthcoming Tesla Semi, which is set to be released in a month’s time.
“A lot of people don’t think you can do a heavy duty long-range truck that is electric. But, we are confident that this can be done,” Musk said previously.
The confidence Musk has in the Semi is reflective of the confidence him and production directors such as Hochholdinger have in their staff.
“We’re going to change the world, and the beginning is today,” Hochholdinger says.
So you have your Tesla Model 3 reservation, but realize you no longer want it, is there a way to sell your Model 3 reservation to another person?
The short answer is “not really,” but our friend Ben Sullins at Teslanomics dives into the legal loopholes of the Model 3 agreement with YouTuber and attorney, Franklin Graves.
Graves points out that under section 6 of the reservation agreement, it clearly states “This agreement is not transferrable or assignable to another party without the prior written approval of a Tesla authorized representative.”
So the slightly longer answer is, “yes, with Tesla’s permission,” but Sullins and Graves dig a little deeper, touching on the fact that Tesla may allow you to transfer rights to a relative or loved one, but not for a profit.
Sullins also advises against buying a Model 3 reservation because it could either be a scam or Tesla could retroactively cancel it if they find out.
In terms of selling the vehicle once you own it, that is an entirely different story.
Graves points out that there is nothing noticeable in the contract preventing you from selling the vehicle upon its delivery, and Tesla would receive consumer backlash for claiming it still had rights to a vehicle that was purchased by a consumer.
The final point Sullins touches on is making a profit through selling the car after you get the $7500 federal tax credit that comes with purchasing a Tesla. Sullins tries to dissuade viewers of the idea because the government could tax your sale of the car as income, making for a fruitless endeavor.
Sullins urges viewers to talk to a tax professional before going down that route.
The video itself is informative and definitely a good view if you are wondering what exactly your rights are. As Sullins and Graves reiterate throughout the video, use caution before trying to do any of these things, and it is always best to consult an attorney or professional when handling contractual loopholes.
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