Tesla's problem was never about the technology it took to run an electronic vehicle that also drove itself. It has, instead, always been the price tag that came along with this technology. Try as he might, Elon Musk was only releasing cars that most people could not afford - until the Model 3 was released. With its relatable price tag, it instantly became a popular choice for those who wanted a foot in the EV bandwagon.
Musk has explained the price cuts as developments in battery technology, that by developing this side of the market, Tesla has been able to cut its costs. This is a logical explanation, as the battery field has undergone update after update, both in larger EVs and smaller smartphones. The same sized battery is capable of so much more energy now at a lower cost. But this is not the only thing that will change.
The Model 3 is designed differently from the Model S and the Model X. But as Hybrid Cars reports, it all sounded great on paper when the prototype was introduced more than a year ago. It was showcased as a US$35,000 vehicle with 215 miles of range per single full charge. And wit these numbers, more than 400,000 individuals have put down the US$1000 required to reserve one.
But as the publication continues, YouTuber Shots of Jameson recently compared the initial price of the Model 3 with the Model S and the numbers are quite surprising. Adding Tesla's premium features to the upcoming sedan will price it over US$75,000. Theoretically, the unit could even price more than US$100,000.
These premium features could include all or a combination of an upgraded set of wheels, a glass roof to replace the standard metal design, premium interior features, a larger battery and Tesla's Autopilot feature. There is also premium sound to consider adding to the base model. These things, which are relatively reasonable add-ons, could cost more than US$75,000.
The most common upgrade is likely to be the larger battery pack. Shots of Jameson speculated that the base model of the Model 3 will come with about 55 kWh. Upgrading the same to a 70 kWh battery will cost an additional US$4,875, while a 90-100 kWh battery will set a buyer back by double that amount.
Of course, there is the option to just keep the Model 3 as it rolls right out of the factory and as Tesla first reported it as. However, Gas2 notes that the standard units will take even longer to release. According to the publication, the company has already confirmed that it will roll out the highest profit value units first.
Furthermore, Tesla is about to breach its tax break, especially with the hundreds of thousands of individuals who have already requested for the Model 3. The publication reports that over 100,000 units have already been sold. When the company hits 200,000, the taxes will increase thereby increasing the initially reported US$35,000 cost.
Whether or not the price increase will matter to the general public is unsure at this point. But with the following that the Model 3 currently has and is continuing to gain, it does not look like Tesla has much to worry about. The company has also confirmed that units will start to roll out of its Gigafactory sometime this year.