Tesla Model 3 to Be Unveiled in March

Getty Images
Elon Musk

The $35,000 electric sedan will be available for pre-order March 31 and enter production in 2017.

Tesla Motors CEO Elon Musk confirmed its Model 3 — the company's bid to build a mass-market car — will be unveiled next month and enter production by the end of 2017.

"We're really looking forward to the unveiling of the Model 3 next month," Musk told financial analysts in a conference call about Tesla's fourth-quarter 2015 results.

Musk later posted on his Twitter account that Model 3 reservations, with a $1,000 deposit, would be accepted starting March 31 at Tesla stores and April 1 online. The Model 3's $35,000 list price does not take into account federal and state financial incentives, which could lower the actual price of the car to $25,000 in California.

The Model 3 is seen as crucial to Tesla's future. Musk has stated that the carmaker, whose Model S was the best-selling luxury car in the United States in 2015, according to estimates compiled by EV Obsession, and a perennial favorite of Hollywood's ruling class, will sell 500,000 cars a year by 2020.

In order to build the Model 3 in volume, Tesla is building a $6 billion gigafactory in the Nevada desert to supply batteries for the Model 3, Model S and the Model X, an $80,000 SUV that is finally hitting the streets after years of production delays related to its exceedingly complex design.

The Model 3 announcement and strong sales projections for the Model S and Model X helped temper Tesla's otherwise disastrous fourth-quarter earnings, which fell well below analysts' projections. Tesla stock, which had fallen nearly 40 percent since the beginning of this year, rose more than 10 percent following Musk's comments.

comments powered by Disqus