The new Tesla could push the company closer to its 500,000 cars a year goal.
Tesla is a company which often makes bold and grand promises, and then fails to live up to them. Greenlight Capital’s David Einhorn recently slammed the company, and it’s CEO Elon Musk for constantly over-promising and under-delivering. “Complacent shareholders have been willing to look past years of over-promising and under-delivering from a promotional CEO,” Einhorn wrote.”Elon Musk’s ability to spin a yarn and keep a story going seems to mesmerize his investors, blinding them to the challenges the company is facing.” However, with Model 3’s upcoming debut, Tesla might actually meet the bold claim of selling half a million cars per year.
Business Insider’s Matthew Debord has argued that Tesla’s “challenges” are actually part of a calculated business plan. It doesn’t benefit Tesla to meet moderate demands, or to under-promise and over-deliver. By making strong and bold claims, Musk is keeping interest and investments going, all the while he grows the company at a steady pace. Under-delivering however, might be a thing of the past, as the Model 3 is slated to be a huge success.
The Model 3 is sleek, fast, and has a 320km range, all for just SGD 42,000 (USD 30,000). It also features Tesla’s full self-driving capabilities, which will become activated at the same time as it is for the rest of the manufacturer’s lineup. Essentially though, the car is an average mid-range four-door; a Toyota Corolla with a different exterior and an electric engine instead of a combustion engine. The new car is already garnering a lot of interest: So far 375,000 customers have registered to pre-order the vehicle.
If sales reflect the pre-orders, Tesla just might manage their lofty 500,000 cars a year goal. The majority of those cars are expected to be Model 3s. The Model 3 is what car manufacturers call a volume product – a cheap, easily bulk manufactured vehicle to sell to the masses. Tesla will still produce their other models, of course, but the Model S and Model X are considered luxury cars, and won’t be easy to make a high-volume turn around on. The Model 3 is just a nice, medium-sized four door car. The remarkable thing about it is how unremarkable it is – and that will very likely be why it succeeds.
source: Business Insider