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?
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