Tesla Motors will introduce its newest electric car named Model 3 in Tesla Design Studio in Hawthrone, California, USA, on March 31, 2016. Unlike the other models, the Model 3 is positioned in the midsize segment with a relatively cheap price tag. The reason, the founder of Tesla, Elon Musk, wanted electric cars can go into all segments. Thus, the zero emission car is not always synonymous with premium or luxury. Model 3 itself will be priced in the price range USD35000. That amount is less than half of the Model S's price of more than USD75000.
That way, Model 3 is expected to boost sales of Tesla Motors. Currently, Tesla only sells 50 thousand units of cars per year. With the presence of Model 3, sales are expected to reach 500 thousand units per year by 2020. However, not necessarily Model 3 will be in demand by market. Tesla will face many challenges to market its new electric car. Because the current electric car sales tend to stagnate due to the drop in world oil prices.
People prefer conventional engine cars with great power. They are not worried about the price of fuel. However, automotive observers assess Tesla's move by launching Model 3 is the right decision. Tesla requires an electric car with cheap tag to compete. Not only compete with conventional engine cars, but also with other manufacturers who also sell cheap electric cars.