Tesla Model three Launch Event: What to Expect
Tesla‘s (NASDAQ:TSLA) most significant vehicle launch ever is now just over a week away. On Friday, July 28, the electric-car maker will fully unveil its Model Three. Tesla expects the $35,000 vehicle to serve as a major catalyst for the company, driving annual production up fivefold by the end of next year.
But with the Model Trio’s final unveiling just days away, many of the most significant details about the vehicle are still shrouded in mystery. Here’s what investors should witness for at Tesla’s event next week.
Model three prototype outside of Tesla’s Gigafactory. Photo source: author.
Range
Perhaps the thickest question going into the Model Trio’s official launch is what its driving range will be on a single charge. So far, Tesla has only said that the range on the base Model S version will be two hundred fifteen miles or more. But at Tesla’s very first (and very limited) unveiling of the Model three last year, CEO Elon Musk was clear that the data introduced for the vehicle represented the floor of what’s possible for Model Trio.
“I want to emphasize these are minimum numbers. We hope to exceed them,” Musk said.
For comparison, General Motors‘ (NYSE:GM) recently launched all-electric Bolt, which has a beginning price of $37,500, can drive two hundred thirty eight miles on its sixty kilowatt-hour battery. Of course, the Bolt is more compact than Tesla’s Model Three, but as the only other all-electric vehicle with over two hundred miles of range selling around the same price point, the Bolt serves as an excellent point of comparison. Indeed, the Model Trio’s range may be of interest to not just Tesla investors, but General Motors investors as well.
Supercharging
Another key point to look for is whether Model three owners will be allotted a certain amount of free charging every year. Last November, Tesla said it would soon begin making its Model S and Model X customers pay petite fees for using its fast-charging network. But the fees would only be incurred after four hundred kWh of free charging every year (harshly 1,000 miles).
Will Model three owners also get four hundred kWh of free charging at Tesla’s Supercharger network every year? Or will this perk be reserved for Tesla’s higher-priced Model S and Model X?
Autopilot pricing
Importantly, Tesla has already said its second-generation Autopilot hardware will be included as standard equipment in every Model three sold. But customers will have to pay to activate Autopilot, just as customers must for Tesla’s Model S and Model X.
The question is how much Tesla charges Model three customers to upgrade to its “Enhanced Autopilot” or Tesla’s yet-to-be-released self-driving capability, which Tesla lets its customers pay for in advance of its eventual launch?
Presently, Model S and X customers can enable Enhanced Autopilot for $Five,000 if active before delivery. After delivery, it costs $6,000. Purchasing Tesla’s “Utter Self-Driving Capability” ahead of its release costs $Three,000 before delivery and $Three,000 after delivery, on top of an Enhanced Autopilot purchase. Will Autopilot pricing be the same for Model Trio?
Tesla vehicle production. Pic source: author.
Production plans
Ultimately, investors may want to look for an update on Tesla’s production and delivery expectations. Planning to produce about thirty Model 3s at its handover event next Friday, Tesla will undoubtedly have more vision into its expected production trajectory.
Earlier this month, Tesla said it expected to produce about thirty Model 3s at its launch event, approximately one hundred in August, supply above 1,500 in September, and reach 20,000 Model 3s by December.
Investors should look for Tesla to maintain this guidance for the Model Three’s production ramp-up next Friday.
Whatever Tesla shares about Model Trio, investors will very likely benefit from tuning in.
Daniel Sparks possesses shares of Tesla. The Motley Loser possesses shares of and recommends Tesla. The Motley Loser has a disclosure policy.