Model 3 production may be looking up for Tesla
The original Model 3 costs roughly $35,000, and this weekend Elon Musk announced that this price will be more than doubled for the high-performance Model 3.
So, what makes it worth more than double the price? According to Musk, the new Model 3 has a driving range of 310 miles and is able to go from 0 to 60 miles per hour in 3.5 seconds.
Additionally, the new Model 3 will have a dual motor that makes it accelerate quicker and gain higher speeds. According to Musk, if one motor breaks, the car is still able to run off of the other motor.
Musk tweeted that it is similar to the BMW M3 (which sells for $66,500) in its features, but that it is “15% quicker and with better handling” due to the dual-motor framework.
However, Tesla still faces its production problem with the Model 3. While production has recently increased to roughly 2,200 cars a week, this still doesn’t match their demand for the car.
The Model 3 had almost 500,000 orders in two years, so Musk would need to significantly ramp up production numbers to fulfill these orders.
However, Musk seeks to appease investors soon, claiming that he plans to produce 5,000 Model 3’s a week by July. Investors are still reluctant, as Musk tends to be overly optimistic, but if it holds, then Tesla’s future could be looking up.
Tesla also announced the development of their customer service system. Soon, Tesla-owners will be able to request service from their phone and receive direct assistance from a Tesla Ranger.
The introduction of this car seems promising for Tesla. Moreover, Musk may be ambitious, but he wouldn’t add a new car to Tesla’s arsenal if production were still at a standstill.
Watch out for Tesla (TSLA) and its shares the next couple months, as there might likely be a rebound from their current stock dip.