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Old 07-08-2014, 10:15 PM
Bernie@Bimmerfest Bernie@Bimmerfest is offline
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Tesla's 3 series competitor will be 'realistically' priced

Tesla's next sedan model comes closer to being reality every day. It may still not have a name, since Tesla and Ford had some sort of agreement about the use of the 'Model E' moniker, but at least the word on the street is that it will be 'realistically' priced. I like realistic, it's way better than unrealistic and that's just fact.

This new Tesla model, I'll still call it the Model "E", is said to be priced in the range of the Audi A4 and the BMW 3 Series, around $40k. That means some electric competition for the German automakers. However, in order to get the price down from that of the Model S, into the entry-level luxury segment, some changes will be made.

The Model E will be 20 percent smaller than the Model S and will utilize a more cost effective structure. So, the Model E won't be based on the same all-aluminum platform as the larger Model S, instead, it will likely end up with a low percentage of aluminum parts and be constructed mostly of steel. To try to get costs down even further, Tesla has plans for a Gigafactory, to manufacture their own batteries. This would help Tesla cut their battery costs by more than 30 percent. An article from The Street, quoted Tesla's VP of Communication and Marketing Simon Sproule saying, "The Gigafactory will allow Tesla to achieve economies of scale and reduce battery cell costs through innovative manufacturing, reduction of logistics waste, optimization of co-located processes and reduced overhead. We will be able to reduce cell costs much faster than the status quo; by the end of the first year of volume production of our Gen. III/mass market vehicle, we expect the Gigafactory will have driven the per kWh cost of our battery pack down by at least 30%."

Keeping the cost in the $40k range can make the Model E a real contender. If the Model E delivers decent looks as well as performance at that realistic price point, the buyers will be lining up.

More on the Model E name situation here!

Source Autocar and The Street
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Last edited by Bernie@Bimmerfest; 07-08-2014 at 10:19 PM.
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