Tesla Motors is reportedly counting on their upcoming Model 3 to deliver another profit gain in the fourth quarter and potentially big returns for the company in the long run.
The company, led by CEO Elon Musk, recently reported their quarterly profit this week, revealing that the record deliveries of the new vehicle helped offset the rising expenses for the rollout of the sedan. At this time, Model 3 has already generated around 400,000 pre-orders.
Tesla posted a net income of $21.9 million for the third quarter which ended on Sept. 30. This is a significant improvement considering that the company posted a loss of $229.9 million last year. Total revenue has doubled to $2.3 billion.
Musk also reiterated that the Model 3 is on track for deliveries in the second half of 2017 despite rumors that it may be delayed to sometime in 2018. Model 3 has a starting price of $35,000 which is about half the cost of the current Model S sedan which starts at around $134,500. It is also believed that the cheaper sedan will help the company’s goal of producing 500,000 cars annually by 2018.
When it comes to features, the company claims that the Model 3 is a sustainable transport option as it combines real-world range, performance, safety and spaciousness all in a single premium vehicle. It can achieve 215 miles of range per charge and is designed to attain the highest safety ratings in every category,
Moreover, it can go from zero to 60 miles per hour in just under six seconds. It has autopilot hardware, supercharging capability and comfortable seating for five adults.
According to Jake Fisher, Consumer Reports’ director of automotive testing, the Model 3 can be described as a reliable choice.
“When we have looked at pure electric vehicles, they are every reliable, which makes sense: they are very, very simple,” he said.
Fisher added that it will be interesting to see if Tesla will forego some of its surprise features seen on the Model X, such as the falcon-wing doors and the power front doors, which apparently have hurt the company previously.