Elon Musk’s affordable vision is near

Published 25-JUL-2017 15:30 P.M.

|

2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.


Click Here to View Latest Articles

In 2013, Tesla design chief Franz von Holzhausen claimed that the Model 3 would be “an Audi A4, BMW 3-series, Mercedes-Benz C-Class type of vehicle that will offer everything: range, affordability and performance”.

There were doubts that Holzhausen’s words would come to fruition, considering Tesla’s first entries would leave a ~AU$100,000 hole in your bank account. Yet, the Model 3 prototype, a fastback all electric sedan which was officially unveiled on March 31 2016 at Tesla’s shareholder meeting, is now set to deliver on his promise.

Tesla’s newest toy is a feasible alternative to mid-tier luxury offerings from BMW and Mercedes-Benz. Headlining an act of new electric vehicles, the first 30 Model 3s will meet their new owners on the July 28.

The base model starts from US$35,000 and can go from 0-100km in a respectable 5.8 seconds. It also features Tesla’s controversial (albeit exciting) autopilot mode, which allows users to engage an autonomous driving function at any time.

Tesla Model 3 interior

Although Tesla has released little information about the vehicle’s drivetrain, it’s expected to be a quality performer. The instant delivery of torque from the electric engine should ensure that the Model 3 handles like a dream, regardless of road conditions.

Perhaps the greatest selling point of the sedan is its exceptional 345km charge range. To put this number into perspective, many electric vehicles up to now have barely scraped past 200km before needing another charge, which has limited their market penetration.

The Model 3’s interior is surprisingly sparse – there’s a conspicuous absence of gauge clusters and zero buttons on the dash. Instead, a 15” LED display is situated next to the barren steering wheel, which acts as the gateway for all that functionality – speed display, driving mode and climate control.

Affordability could make the Model 3 a game changer

Attainably priced at just US$35,000, Telsa has no doubt the demand is there. The vehicle has every chance of kick-starting a major transition away from combustible engines that have powered our cars for the last century.

Before that happens however, the Model 3 must become readily available. Unfortunately, there’s already a 1-2 year waiting list if you want to get your hands on one. But it seems Tesla has every intention of meeting demand.

Tesla CEO Elon Musk wants to increase its production volume six-fold by 2018 (based off 84,000 cars in 2016) and believes around $1.15 billion is required to fully flesh out the required numbers of Tesla’s newest sedan.

Roughly 100 Model 3s will come off the production line in August, and Musk has said he expects this number to increase to beyond 1,500 in September, climbing to 20,000 by December.

Electric car sales 2016

Electric car engine sales last year

Once Tesla increases its production capacity, the world will be one step closer to affordable electric cars.

tags

TESLA


General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.

 

Discover Small Cap
Biotech Stocks

Join thousands of other Investors following our stock commentary for Free

X