Tesla Motors is bringing its electric vehicles to the mass market in 2017 with the Model III. The electric vehicle will cost a mere $35,000, far less expensive than the luxury-focused Model S which generally goes for around $80,000 to $90,000. If the Model III is anywhere close to the quality of its previous automobiles, automakers like BMW and Mercedes should be very concerned.
One of the biggest obstacles that electric vehicles face is their range. Tesla has generally rendered this a non-issue with its previous cars, something that it intends to do again with the Model III. Tesla’s CEO, Elon Musk, claims that the vehicle will be able to travel two-hundred miles on a single charge. However, just because Tesla can solve the range issue doesn’t mean it can make the vehicle profitable.
Can Tesla build and sell a high-quality, two-hundred-mile electric vehicle for $35,000 and still make a profit? If it can, then it would shake the auto industry. The average sale price of a car in the United States is $31,000, so the Model III isn’t quite mainstream, but it’s still more than enough to put the competition to the test. Read more about this story here.