Tesla banks big dollars on Model 3

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The unveiling of the Model 3 has seen more the 276,000 reservations placed for the mid-sized electric hatchback. And each has depositing circa $US1000 ($A1500 locally) to queue for the new car.

The 276K stat came from the horse’s mouth. Tesla CEO Elon Musk revealed the number in a tweet on Sunday.

Following the Model 3 reveal, Musk also stated that in the first 24 hours the average ‘optioned’ price of the cars reserved was $US42,000 -- a $US7000 premium above the base price of $US35,000.

Accounting for almost $US11.6 billion in potential future revenue for Tesla, the Model 3 is possibly the most successful launch of a mainstream vehicle in history. On Friday, Tesla was a niche manufacturer of luxury electric vehicles. This morning (April 4) Tesla had defined the future of the automobile. That’s not an exaggeration of the influence Tesla now wields.

If you tuned in on Friday afternoon to watch Tesla live online reveal of the Model 3, you witnessed the shaking of the century-old auto industry by a young, dynamic brand that’s yet to reach puberty. The Model 3 changes everything for Tesla, and the little electric car company is influencing everything about and old auto industry in transition.

Those who paid the price for admission to the Model 3 now enjoy the pleasure of waiting 18 months or longer for Tesla to start production and begin delivering the mid-sized all-electric hatch. The company stated in a press release that Model 3 production will begin in late 2017 with right-hand-drive production for Australia, the UK, Ireland, Japan, New Zealand and South Africa planned for a later date.

Tesla at least is committed to right-hand-drive markets unlike General Motors which is yet to confirm when or if its new electric Chevrolet Bolt will be offered in right-hand drive.

The Bolt is a legitimate price and driving-range competitor to Model 3.

Are you one of the few Aussies in the queue for Model 3?

Be very patient. The likely delivery date will reach out at least 29 months to mid-2018 for right-hand-drive variants. That’s longer than most new-car warranties and a lot of marriages these days.

And let’s be real. Mid-2018 for right-hand-drive deliveries is optimistic. Tesla and calendars just don’t work well together.

As we saw with the delay of Model S for Australia and the postponed launch of Model X, Musk and crew prefer flexible deadlines drawn in pencil.

So Aussies be aware that mid-2018 is a best date scenario. First of all, Tesla needs to upscale production of lithium-ion batteries from its new gigafactory.

“This factory will produce more lithium-ion batteries than all other factories in the world combined. So we’re talking about 50gigawatt hours a year of production,” said Musk on Friday.

“It will also be producing the most advanced cell and battery in the world. So this combination of high volume with the most advanced technology is what enables us to make the Model 3.”

So when do Model 3 deliveries begin?

“Well, they are next year [for North America],” he said, then laughing added: “I do feel fairly confident it will be next year.”

Don’t overlook Tesla is yet to build more than 60,000 vehicles per year. Increasing production eight fold to 500,000 vehicles per year to meet Model 3 sales and the second generation Roadster coming in 2019 will be a massive task.

Giving Musk the benefit of his own doubts, the first Model 3 delivery in North America will be late 2017. Ramping up production will take months, so clearing the backlog of 200,000 Model 3 orders will take the first half of 2018.

That means RHD production could start by July 2018. Add a month for shipping to Australia, and August or September looks do-able for the first Australian delivery of Model 3.

Tesla didn’t actually reveal much about the Model 3 we didn’t already know on Friday.

A year ago Musk had mentioned Model 3 pricing from $US35,000 and production targets. He’d also confirmed a motorway cruising range beyond 320km.

We expected and Musk confirmed a future range of Model 3 variants including an all-wheel-drive high-performance model. Certainly Tesla will develop an SUV sharing the Model 3’s platform and many of its components. Rumours are the mid-sized SUV off the Model 3 platform will be badged Model Y.

Model 3’s exterior design was a surprise. The styling needed to be confrontational and perhaps controversial. That it is. The Model 3 frontend is best described as the backend of something else.

Realise, however, that Tesla on Friday revealed a design prototype of Model 3. Design Director Franz von Holzhausen has time to revise.

The absence of a front grille was a big surprise. Obviously von Holzhausen is balancing aerodynamic function and efficiency with his design interpretation of the Tesla brand. Still, an electric vehicle needs a lot of air to cool the battery packs, provide cockpit ventilation and allow the HVAC system to function.

General Motors engineers developing the new Chevy Bolt found the EV needed as much or more air flow than does a conventional internal-combustion car.

The Model 3’s blunt nose may be a work in progress – let’s hope. From our glimpse of the interior (Tesla hasn’t posted interior images on its website) it seems the Model 3 will carry design cues and technology similar to the Model S.

Voice command technology may replace touch-screen commands by the time Tesla starts deliveries, but it appears the driver will access range, performance, and other information via a large high-resolution colour screen.

Tesla must be doing something right. Look at it this way, 200,000+ deposits in 72 hours for Model 3 is a genuine vote of consumer confidence.

In fact, Tesla is doing a lot of things right. GM or Ford executives speak of wanting to build cars that “delight and excite”. Those words have become the essence of the Tesla ownership experience.

“At Tesla we don’t make slow cars,” said Musk after confirming the bones basic Model 3’s 0-100km acceleration in less than 6 seconds. High-performance variants will be seconds quicker.

According to Musk, every Model 3 will be hardwired with driver-assist safety features including Autopilot autonomous driving technology. How these optional features are activated in future he didn’t say, but you can assume Tesla may charge a simple activation fee.

The Chevy Bolt wearing a $US30K price tag and offering a 320km cruising range will arrive in North American showrooms about a year before the Model 3. But after Tesla’s strong showing this weekend, you get the idea that Tesla is really the brand driving the market forward and teaching the old boys a few tricks.

UPDATED: In its latest publicity driver, Tesla has announced a partnership with Qantas.

Qantas and Tesla are “collaborating to drive innovation for their customers and sustainability in the transport industry”.

Under the agreement Tesla will host Qantas Frequent Flyer events and Tesla ‘High Power Wall Connectors’ will be installed at Qantas Valet facilities at Sydney, Melbourne, Brisbane and Adelaide airports. Additionally Qantas will become Tesla’s airline of choice in Australia and offset all the car maker’s domestic corporate travel emissions as part of Qantas’ Future Planet Program.

The agreement was celebrated with a 737 Tesla Model S ‘drag race’ at Avalon Airport near Geelong (Vic).