LOS ANGELES: After Elon Musk unveiled Tesla's Model 3 sedan, guests got to ride in, but not drive, the car for roughly 5 to 10 minutes. The experience was almost a decade in the making since Musk first laid out his “master plan” to get butts into the seats of electric cars.
As soon as Tesla's chief executive officer finished speaking Thursday evening, guests at the 800-person unveiling event lined up for rides. Three passengers at a time climbed into each of the two sedans available for a spin.
The Model 3 seats five and gets at least 346km per charge, a minimum Tesla hopes to exceed. It comes standard with autopilot hardware, but Musk didn’t reveal all of the autonomous features that are in the works, and guests didn’t get a chance to experience them on Thursday, when Tesla executives were at the wheel.
The Model 3 is smaller than the Model S, yet it feels spacious. Sitting in the back seat, the single piece of glass over the rear roof area gives the car the impression of expansive interior volume.
“Beautiful proportions, stunning crease lines, gorgeous details,” Rebecca Lindland, an analyst with Kelley Blue Book, said in an e-mail. “It looks like a million bucks.”
Speed and handling
JB Straubel, Tesla's chief technology officer, told an audience at the University of Nevada at Reno in October that the Model 3 has new battery architecture, new motor technology, and a brand-new vehicle structure. Much of that wasn’t visible to the initial test riders. What was noticeable was the car's ability to go 0-to-60 miles per hour in less than 6 seconds, and handle tight curves with ease.
While the Model S has been famous in part for its 17-inch vertical touch screen, the Model 3's is smaller, at 15 inches, and is set horizontally.
Musk looked visibly happy Thursday night as he unveiled the Model 3. The car's introduction is a seminal moment for Tesla, part of a plan Musk first revealed in August 2006. Before showing the Model 3, he stressed the importance of accelerating the transition to sustainable transportation as the impacts of climate change become increasingly severe.
“Thank you to everyone that ordered the car,” Musk said. “We love you!”
Hours after Musk's remarks, more than 134,000 orders had been received, exceeding the roughly 107,000 cars that Tesla has on the road worldwide. Musk tweeted on Saturday that that number had soared to 276,000 within three days. Orders require a US$1,000 deposit and are refundable upon cancelling a reservation.
More cash needed
Reuters quoted analysts as saying Tesla may need to raise more cash if it hopes to deliver the new electric vehicle to customers on time.
There are concerns among some investors in Tesla, which has promised to turn profitable this year, even after the hoopla and exuberance surrounding the unveiling late on Thursday of a Model 3 prototype.
Morgan Stanley analyst Adam Jonas, a longtime Tesla booster, predicted the Silicon Valley car maker's sales will hit just under 250,000 in 2020.
Barclays analyst Brian Johnson believes the surge of Model 3 reservations could reach 300,000 by the end of June.
The higher-than-expected number of orders could "set the stage for an equity offering" after the company's first-quarter results are posted, Johnson said.
Much of any additional cash raised this year will be needed for Tesla's new U.S. factories, as well as for further product development, Johnson said.
While the Model 3 will have a starting price of US$35,000, some analysts expect the first cars will sell for an average of US$50,000-US$60,000. Tesla prices its current models in several "tiers," depending on content and optional features.
