Are you looking forward to buy a Tesla (NASDAQ: TSLA) vehicle but cannot afford the Model S and Model X? Here your chance. Tesla Motors’ CEO Elon Musk will unveil the more affordable electric vehicle Model 3 on March 31.
The Model 3 is targeting in the entry-level luxury market. This is a much bigger market for automakers and more competitive. The major players in this class of car include BMW 3 Series, the Mercedes-Benz C-Class, Acura TLX, Lexus IS, Infiniti Q50, Audi A4 and Cadillac ATS. BMW 3 Series and Mercedes-Benz C-Class are leading this market, with combined sales of 226,689 cars in 2015, according to the data from Bloomberg.
The Model 3 is expected to start at around $35,000, much cheaper than a $70,000 Model S. The price is also cheaper than that of its major competitors BMW 3 Series, the Mercedes-Benz C-Class.
The Model 3 may also face competition from compact cars such as Ford Focus, Chevy Cruz, and Honda Civic. These inexpensive cars, which cost less than $22,000, had combined annual U.S sales of more than 200,000 per year.
The company will unveil the Model 3 at Tesla’s design headquarters in Hawthorne, Calif., on March 31. The company also announced Monday that it will start taking reservations soon after it unveils the new car. People who want to buy the car just pay $1000 deposit for the reservation.
The first deliveries are scheduled for next year, beginning from West Coast.
"As we continue to ramp production, we will begin deliveries in Europe, [Asian and Pacific Coasts] and right-hand drive markets," the company said. "It is not possible to ship to all regions simultaneously because regulators in each part of the world have slightly different production requirements."