Tesla Model 3 Latest News & Update: Auto Industry Game Changer Brings BMW 3, Audi A4 Autopilot Setup?
Tesla Model 3 is said to be one of the major catalysts in the automotive business if it reaches a positive gross margin like Model X and Model S. In fact, Tesla is believed to have the capability to manufacture a mass-market long-range electric car for a profit.
Tesla Model 3 Gross Margin Will Likely Be Compared With Model S' Margin
Tesla Model 3 may likely achieve a 25 percent gross margin, which is comparable with the Model S margin. According to reports, an analyst that covers Tesla's stock gives the company an Outperform rating with $330 price target.
The interesting comparison of Tesla Model 3 and Model S is due to the fact that CEO Elon Musk previously referred to Porsche when talking about Tesla's long-term goal for gross margins. Incidentally, the vehicle is known for holding the segment leading gross margins.
Tesla Model 3, meantime, is expected to be the key factor for most of the company's production and achieve a lower gross margin. On the other hand, Musk believes that the Model S margin will go up to 30 percent, although it will unlikely take the average down lower than 25 percent. Meanwhile, Tesla Model 3 will be mass produced, long range and very affordable, Electrek reported.
Tesla Model Will Be Awesome
Tesla Model 3 will feature an Autopilot capabilities. The new model will be much like the BMW 3 series or Audi A4 given its Autopilot setup, faster performance, and larger storage space. However, Musk clarified that Model 3 will not be the next version of the company.
The highly awaited Tesla Model 3 is also come with a fit larger cooler in the trunk, but will not have any notable new technology that has not been featured in the S and X models. However, there will be a number of new technology when it comes to designs and production process, Teslarati reported. Check out Tesla Model 3 here:
