Tesla 3: What It Means for the Electric Car Industry

May 19, 2016

10:15 am

The Tesla Model 3 is coming out in 2017, and people are eagerly anticipating how it will affect the industry. First, let’s talk about features. The drivers of the newest model will be able to drive up to 215 miles before recharging. Then there’s the power. The promised acceleration rate is zero to sixty in less than six seconds. The Tesla 3 will seat up to 5 passengers, autopilot features are standard, and the price point is around 35K. In addition to this exceptionally reasonable price there may also be tax credits available for consumers.

Surprising Skeptics of Electric Car Marketability

At this point, nobody is surprised that electric cars are popular in urban areas. Both lifestyle and infrastructure support that. However, what does have skeptics of the mass market appeal of electric cars scratching their heads is the fact that consumers from all over are putting in their orders for the Tesla Model 3. People in the suburbs and rural areas seem to be just as willing to invest in an electric car as anybody else. This popularity isn’t limited to the United States either. There is international demand that nobody predicted.

Consumers Are Realizing the Benefits of Owning Electric Vehicles

There are many compelling reasons to purchase an electric vehicle. While the first consumers of these cars were primarily motivated by environmental concerns (still a valid reason by the way), consumers now have financial incentive to do so. Fuel prices fluctuate. They differ from state to state and city to city. Even in one location, prices can vary widely in the space of two days. Electricity prices, on the other hand, are stable and significantly less than gasoline prices. In addition to this, it is easier to own an electric car today than it has in the past. Previously, people who owned fully electric cars would have to carefully plan their trips, sometimes even rerouting to ensure that they would find charging stations. Today, it is easier to find these stations, even in small towns.

An Electric Vehicle-Friendly Political Climate

There is no denying the innovation and hard work that has gone into Elon Musk’s line of automobiles. However, Tesla would not be where it is today if public policy had not changed over the years to become supportive of this industry, nor would other electric car manufacturers. In fact, Tesla was only able to begin production due to a loan provided to them from the department of energy. In addition to this, various tax credit offerings have been incentives for consumers. Then there is the pressure that various governments are putting on auto manufacturers to move towards electric much more sooner than later.

The Disruption Is Happening

Disruption is what happens when somebody comes into an existing market and offers something better, easier to use, less expensive, or that appeals to a wider audience. Tesla hasn’t just disrupted the traditional auto industry, it has also disrupted the electric car space by offering up a vehicle that appeals to car enthusiasts as well as those who go electric for cost and environmental considerations.

Featured photo by hans-johnson//Flickr

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Dianna is a former ESL teacher and World Teach volunteer, currently living in France. She's slightly addicted to apps and viral media trends and helps different companies with product localization and content strategies. You can tweet her at @dilabrien

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