The vehicle will be available for preorder on March 31 in Tesla stores and on April 1 online with a $1,000 deposit.
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Though it would be one of the only vehicles of its kind on the market, the auto industry is buzzing after General Motors recently confirmed that it would beat Tesla to the market for an affordable electric car by at least a year.
Tesla also announced plans to deliver 80,000 to 90,000 Model S and Model X vehicles this year and added that its average vehicle transaction price is expected to slightly increase in the same year.
But it’s not been an easy period for the company.
Tesla confirms the upcoming launch of the much-awaited $35,000 Model 3 on March 31.
But reportedly that price tag is likely to be reduced further by government subsidies for electric vehicles in place around the world. A prototype for a new mass-market model, aimed at having a base price of about $35,000, is expected to make its debut next month.
Tesla spent billions of dollars investing in a new factory and other capital projects in 2015, and the company ended the fourth quarter $114 million in the red.
For the fourth quarter, Tesla reported revenues of $1.21 billion, up 27% over the fourth quarter a year ago, backed majorly by a strong jump in unit sales buoyed mainly by the Model S. Tesla built more than 500 Model X units in the last three months of 2015, but could sell only 208, falling well below analysts’ expectations.
Tesla expects to start delivering the Model 3 in “late 2017”.
The Model 3 will be the third major vehicle in Tesla’s fleet.
Tesla’s weaknesses include its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
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“Model S is winning”, said Tesla. While the fourth quarter earnings, as well as, the top line fell shy of the Street analysts’ estimations, the company provided an upbeat outlook for the current year. It plans to achieve gross margin of 30% by the end of year for Model S, while margins for Model X are expected to reach 25% with continued improvement in 2017.
