The good, the bad and the better of the Tesla Model 3

After years of waiting, innumerable rumors and hypes, yesterday the Tesla Model 3 was officially launched. Set for production/deliveries at the end of 2017, the Model 3 offers a glimpse of the future of electric mobility. With its launch, a lot of things have changed in the automotive market. I am not referring to the fact that it is a low cost - long range EV, there are other competing vehicles that sell at a similar price and offer quite close performance, but rather the way that Tesla has packaged the vehicle and is promoting it.

It is blatantly evident that Tesla put all its cards on the Model 3. As Elon Musk said during his speech, all the other cars Tesla has manufactured, starting from the Roadster to the Model X, were aimed at developing a car for the mass market, idem, the Mode 3. The Model 3 is a low cost vehicle with out of the ordinary specifications. Below are some highlights on how it outshines and outperforms (probably, as details aren't yet available) the competition:

The Good

1. Priced at US$ 35,000 before rebates, it hits the sweet-spot of the money spent on a car by the average american (and European). It is a car that is aimed to sell volumes, and Tesla is preparing for a 500,000 unit per year manufacturing capacity. The closest competitor is the Chevrolet Bolt, but let's face it, as innovative and cool as it might be, the Model 3 is eons ahead in design and appeal.
2. With a range of 215 miles (346km) on the basic model, this is a car that is practical. I still personally believe that 400 miles (circa 644km) is the sweet spot for making electric cars really usable for long trips, but still, this is definitely not a city car (like all low cost EVs) and definitely can be used for a long trip.
3. Quoting Elon Musk - "Tesla doesn't make slow cars" - this is a selling point of the Model 3. As I have written in several of my previous posts, electric cars can have high-power motors comfortably, delivering performance without sacrificing fuel economy. Tesla is doing exactly that. Putting in high-power high-efficiency electric motors in their cars, resulting in a performance that you wouldn't find from any gasoline vehicle in the same price range.
4. The Model 3 is compatible with SuperChargers. Tesla has already a strong network of circa 3500 SuperChargers deployed in the USA, Europe and Asia, with plans to increase it to 7200 by the end of 2017 - coinciding with the actual deliveries of the Model 3 to customers. This smart move by Tesla will ensure a good availability of SuperCharger stations, thus making the range-anxiety issue for Tesla just an unpleasant thing that happened in the past.
5. One thing I like about Tesla is that they give the customers technology that can help save lives free with their cars. This applies to the "autopilot" technology supplied standard with all Model 3 vehicles. It costs the manufacturer a small percentage of the cost of the vehicle, however for the driver and passengers, it can be a life saving issue. On the plus side, being software upgradable means that the car can upgrade to new technologies on the fly via software.
6. Tesla is making sure that you buy (and service) your Model 3 as close to home as possible, by doubling their number of outlets in less than a year from now. Apart from that, anyone can order his Tesla online. This is not the first time that Tesla is taking online orders, but the magnitude of the Model 3 is unheard of. All this brings us to...
7. The Hype. Never has there been this hype and anticipation over an electric car (or any other car for all it matters) in history. People were camping 5 days ahead of the launch to be able to order one of the first Tesla Modem 3's, which they will get in 2 years time. This without even seeing the car. When tens of thousands of customers blindly buy a product just because it is a Tesla, is something unheard of and up to a week ago unimaginable. At the time of writing of this article, preorders have surpassed 200,000 units. Bear in mind that most of these customers have just seen the car on video, and they know nothing about motor power, and several features of the vehicle. They are just paying US$ 1000 to secure a place in the waiting list for their new car.

There are a few things however that Tesla needs to address with its Model 3, which brings us to...

The Bad

1. The luggage booth opening is small, way too small. Due to the design of the roof of the Model 3, the luggage booth lid opens in a strange way and the opening is very small to be practical. There have already been vehicles in the past that failed miserably for this particular reason. Hopefully Tesla will redesign and solve this issue for the production model.
2. The front apron is bland. By removing the radiator grille and filling up the space with nothing, the Model 3 looks strange and sort of empty from the front. On the Model X, although the radiator grille has been removed, they left a space between the frunk lid and the front apron, where they placed the Tesla logo. Although minimal, it makes a striking difference in the car aesthetics.

It is still too early to judge the Model 3, but at first glance, I believe that Tesla got it right. They have learned from the past and delivered a car that is nothing short of revolutionary. This leaves us to...

The Better

Definitely Tesla is on the money right now. If these preorders materialize at an average of $ 42,000 per car, that is over $ 8 billion in revenue for Tesla. This in itself is a game changer for the industry. Tesla has made it clear that people are ready for the electric car, and volumes will be great. At the rate of sales, I wouldn't be surprised if Tesla surpasses 500,000 preorders in the first week.

Tesla has created a hype similar to Apple, with the difference that Teslas cost 50 orders of magnitude more than Apple phones. No other automotive manufacturer achieved this. Chevrolet, a seasoned manufacturer, drew little to no attention when they released the Bolt, even though it is in the same class as Tesla.

And then there's that panoramic glass roof and its minimalist design. Tesla played safe, they went for design rather than slightly usable expensive technology (do Falcon Wing doors ring a bell?). 

Overall, I must congratulate Elon Musk and the team at Tesla for this car. They have shown the world that Electric Cars are the future, and they have created something that no other manufacturer has yet done for electric cars - serious demand. I am sure that they will have no issue selling their full manufacturing capacity. Keep up the good work.

Update - 4th April 2016 - Tesla Model 3 Pre-orders have soared to over 276,000 in the first 3 days, with the anticipated deliveries of the models ordered last already in 2020. Watch up for the follow-up article where I will analyze this data.