The world is still waiting on the much-ballyhooed Tesla Model X crossover, but Tesla Motors has their eyes on the long game and mass appeal down the road with the entry-level Model 3. Up until now it’s been said the Model 3 will be a sedan, but now Tesla’s chief technical officer says it will come in crossover form too.
Smart. People like crossovers.
According to the Wall Street Journal, the Model 3 is due out in 2017 (though I’m now taking bets on how long it will be delayed) and is expected to start around $35,000, before incentives, making it poised to strike at the BMW 3-Series and its ilk. No other details were offered about the Model 3, and even what it will look like remains a mystery.
Meanwhile, about that Model X:
Mr. Musk has said the company faces a delicate balancing act in timing the Model X launch. Vehicle debuts consume an enormous amount of capital, and even slight delays in the timing of the launch could deepen Tesla’s losses or accelerate its cash burn.
On Monday, Standard & Poor’s Ratings Services said Tesla’s cash burn in 2015 “will likely be worse than we had previously expected” and “meaningfully negative.” The asset-backed credit facility “should boost its otherwise weaker year-over-year liquidity and help it fund its substantial growth-related cash investments over the next 12 months,” S&P said.
Tesla needs their crossover to be a big hit. Any way we can hope for a Model S or Model 3 wagon, though?
Contact the author at patrick@jalopnik.com.
DISCUSSION
The S&P Analyst was asked about his weekend plans and responded.
“Cash expenditures will be higher than expected, as spousal entities wished for better value added meal choices. The chance of sexual escapades remains low, due to higher than normal golfing activities over the past fiscal quarter.”