Tesla 3: A Revolution in the Automotive Industry

Tesla aims to follow in the footsteps of companies like Apple with the introduction of the Tesla Model 3. Just as Apple transformed the global computer industry, Tesla seems determined to shake up the conservative automotive sector, which has been resistant to fundamental changes. The Model 3 is introduced with a base price of $35,000 and is set to hit the market in 2017. This electric vehicle can travel 346 kilometers on a single charge. Tesla Model 3 owners can easily plug it in at home overnight and head to work in the morning with a full battery. With its 250-horsepower electric motor, the car can accelerate from 0 to 100 km/h in six seconds. But why can the new Tesla be considered a revolution in the automotive industry? Before the Model 3, the price of a fully electric vehicle that could match the performance of a conventional gasoline sedan was very high, with Tesla's previous models starting around $75,000, a price that deterred middle-class consumers. Wealthy consumers, who typically prioritize power and luxury over fuel costs and environmental concerns, sought powerful luxury vehicles rather than advanced green products. Now, with the $35,000 Model 3, the rules of the game may change, bringing electric vehicles closer to the price range of middle-class consumers. A mere $15,000 price drop could make fossil fuel vehicles feel threatened. Besides Tesla, other companies have also managed to offer electric vehicles in this price range, with the Chevrolet Volt being one of the most notable. The Volt uses electricity in some modes and can travel 80 kilometers on electric power. However, most of these models also use gasoline or diesel engines, and critics argue that major automakers are too conservative to offer a fully electric vehicle. In response to a Bloomberg reporter's question about whether Volt customers are environmentally conscious, GM's marketing director, Darin Gacy, stated that while the Volt can travel a significant distance on electricity, it can switch to gasoline when the electric charge runs out. He noted that over 70% of Americans travel less than 60 kilometers daily, making the Volt a suitable option for them, as they can complete their daily commute on electric power, reducing their monthly gasoline costs and pollution. In response to a question about the Tesla's higher price but greater electric range, Gacy pointed out that the Volt's price of $35,000 allows consumers to purchase two Volts for the price of one Tesla, which is not fully electric but meets the needs of many Americans for an electric vehicle. However, with the arrival of the Model 3, the automotive market dynamics will change. The Model 3 is cheaper than most hybrid vehicles worldwide and offers a significantly greater electric range. The range of the Model 3 is nearly four times that of the Chevrolet Volt in electric mode, and its price is comparable to the Volt. Tesla, one of the youngest automakers in the world, was founded in 2003. Its first product, the Tesla Roadster, was the first fully electric car to use lithium-ion batteries with a range exceeding 320 kilometers per charge. The company has developed new models with several loans and grants from the U.S. government for clean vehicle development.