Tesla wants its new vehicle to compete with the BMW 3 series
Tesla Motors has plans to develop a new electric vehicle that will compete with the BMW 3 series. Tesla’s Elon Musk has been quite vocal about these plans recently, but whether or not Tesla has the ability to compete with BMW is not the question. The question is whether or not the automaker will be able to produce a vehicle that can compete with others in terms of price.
Batteries make clean vehicles more expensive than their conventional counterparts
Electric vehicles have been gaining strong momentum, but they have also been the subject of criticism from consumers that are interested in clean transportation. Electric vehicles are often more expensive than their conventional counterparts, largely due to the cost of the batteries that power these vehicles. Making these vehicles cost effective has been somewhat challenging, but Tesla has managed to find success where other automakers have failed in the past. Tesla’s new Model E is taking aim at the affordability issue.
Model E will be primarily comprised of steel
The Model E is meant to be comprised of mostly steel and priced realistically in order for it to compete with similar vehicles coming from other automakers. Tesla suggests that the Model E will have the ability to travel for more than 200 miles on a single charge. The vehicle is approximately 20% smaller than the Model S, but is being built to pack a great deal of performance in that small package. Tesla estimates that the vehicle will cost approximately $35,000. While the vehicle will be primarily comprised of steel, its battery may have the most influence on its overall price.
Gigafactory may help cut the cost of Tesla’s batteries by 30%
Tesla is currently developing what it calls a “Gigafactory,” which is meant to manufacture the batteries it uses for its vehicles. This Gigafactory may be able to cut the cost of Tesla’s batteries by as much as 30%. Reducing the cost of batteries will reduce the cost of electric vehicles, making them more attractive to consumers and allowing Tesla’s vehicles to be price competitive with other vehicles being released by automakers.