Buyers over at the United States are more drawn toward big pickups, SUVs and compact crossover SUVs; as a result, automakers have been struggling to sell small passenger cars.

Tesla’s Model 3 will be arriving late this year and the automaker has said that it is expecting to build 10,000 units per week for some time in 2018 and it wants to achieve 500,000 in annual deliveries in 2018.

This doesn’t sound like a tough feat seeing that the Model 3 has already secured almost 400,000 pre-orders but we can’t ignore that, just like all other car models, the Model 3 will slow down once its initial surge has passed.

According to Business Insider, Tesla is moving in the wrong direction and the Model 3 is a far bigger risk than the Model S or X. It’s true that the Model 3 isn’t really a mass-market model; it’s more on the lower end of the luxury market.

The report also states that Tesla would spend about $3.5 billion to launch the Model 3 yet the cost could significantly increase when the automaker gets the Model 3 to full-scale production next year.

Tesla is aiming to focus on automation with the Model 3 and it had bought Grohmann Engineering, a German firm specializing in automation. However, in the short term, the Model 3 will be constructed using the existing top notch for the auto industry. That said, Tesla has yet to master the art and so the Model 3 will be its first every major test of whether it is truly capable of it.

Even so, Tesla will still have to reconcile the cost of producing the Model 3 with the profits it will have to do away to bring a cheaper, higher volume car.

There’s no doubt that the Tesla Model 3 will be a big hit but the true test will only take place after its initial sales hype settles down.

Categories: Automotive

1 Comment

Donny · February 28, 2017 at 10:58 am

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