Tesla nobbles Model 3

Tesla has taken the unusual step of publicising the fact its upcoming Model 3 liftback will be slower, lower-tech, inferior to drive, shorter-range and less customisable than its bigger and more expensive Model S sedan.

Caught in final production form on video last month  and pictured here in spy shots taken this week, the mid-size Model 3 sedan is due to enter production in July.

Australian customers were the first in the world to join the queue, with the local order book open for $1500 deposits on March 31, after which at least 373,000 advance orders globally earned the company billions of dollars in potential revenue.

However, Tesla is yet to make a profit and its outspoken CEO Elon Musk was recently forced to deny there would be delays in bringing the Model 3 to market, but admitted capital needed to be raised before it entered production.

He said Tesla is on track to build 5000 examples a week of its pure-electric rival for the BMW 3 Series by September, increasing to 10,000/week in 2018, when it plans to deliver 500,000 vehicles in total -- including the larger Model S sedan and Model X crossover – increasing to a million by 2020.

But Tesla has forecast just 50,000 Model S and X sales in the first half of this year and its most affordable model so far (at about $US35,000 in North America) won't be available until later next year in Australia, where pricing is expected to start around $65,000 and where owners won't be granted free charging like Model S drivers were.

Now, in an unusual overnight blog post, Tesla appears to be attempting to shore up buyers for its more profitable models.

"We’ve been getting ready for Model 3 by advancing manufacturing, expanding our charging network, improving service, opening more retail stores and much more," it said.

"With a new model coming this year, we know our customers will have questions about which car is right for them. One question we’ve been asked is, 'Should I trade in my Model S for a Model 3?'

"While Model 3 will be our newest car, it isn’t 'Version 3' or the next generation Tesla. Our higher priced premium models still include the most advanced technology and the best driving experience we have to offer.

"Model S is the leader in its class in every category, which is why 94 per cent of our owners say they will buy Model S again. It has a 5-star safety rating and will continue to be our flagship Model with more range, more acceleration, more power, more passenger and cargo room, more displays (two) and more customization choices.

"With Ludicrous+, Model S has a zero-to-60 time of 2.28 seconds as measured by Motor Trend, making it the fastest accelerating production car in the world. Model S will also continue to be the longest-range vehicle we offer, capable of a landmark 335 miles on a single charge, meaning you can travel from Los Angeles to San Francisco nonstop."

Like the Model S and Model X siblings, the smallest and cheapest Tesla model will come with AutoPilot self-driving technology, Supercharger fast-recharge capability, remote software updates, a glass roof that extends from bonnet to boot lid, five seats and a landscape touch-screen infotainment system to replace the oddball portrait unit in the Model S.

Tesla also claims the entry-level version of the Model 3 will boast an electric driving range of about 350km and 0-100km/h acceleration in less than six seconds, but makes it clear the Model S remains the best vehicle it produces.

"Model 3 is smaller, simpler, and will come with far fewer options than Model S, but it makes driving feel effortless and offers a good range of at least 215 miles for our starting model.

"At the foundation of every Tesla is safety – keeping our customers safe is part of every decision we make. In addition, every Tesla vehicle (Model 3 too) comes standard with full self-driving hardware which, through over-the-air software upgrades, will enable a Tesla to be substantially safer than a human driver.

"As we continue to test and validate new features, customers can expect an increasing number of updates to be rolled out to their cars this year. And while innovation at Tesla will never stop, the very best vehicles we make are already available for purchase and on the road today."

After the Model 3, Tesla plans to release the Model Y SUV, an all-electric delivery van, large people-mover and perhaps even a ute.