Tesla Motors Inc (NASDAQ:TSLA)’s mass market car Gen III‘s development is on track. The car will be launched in the next three years, said Tesla’s vice president Jerome Guillen. That’s in line with Barclays analyst Brian A. Johnson’s prediction of Gen III hitting the market in 2017. When asked about the company’s plans for the electric truck, Guillen said the EV maker is busy enough with Model X and the third generation. So, we believe the electric truck is unlikely to enter the pipeline before 2020-2022.
Tesla Motors Inc (NASDAQ:TSLA) is busy expanding its business in China. The company unveiled the price of its Model S in the world’s most populous country. Tesla priced its flagship car at just $121,000. Though the price is higher in China than the U.S., it’s mainly due to import duties, taxes and other unavoidable expenses. Luxury car makers launch their vehicles in China at a much higher price than in the U.S. to double their profits in the country. But Tesla Motors CEO Elon Musk said he will do the right thing for his Chinese customers despite knowing that he could charge double for Model S.
Tesla’s three growth eras
The Palo Alto-based electric vehicle maker plans to launch its Model X car by the end of this year. In November 2013, Barclays analyst Brian A. Johnson outlined Tesla Motors Inc (NASDAQ:TSLA)’s three future growth eras. He said Era One began in 2012, and will run through 2016. During this period, the company launches Model S and Model X, and sees subsequent growth of these vehicles.
Era Two will start in 2017 and continue through 2022. Tesla Motors Inc (NASDAQ:TSLA) will launch the Gen III vehicles that will be more affordable. The automaker claims that the Gen III will be a mass-market car. But Johnson says it will be priced between $40,000-$45,000. That price falls in the range of BMW 3 Series and Audi A4. Era Three begins in 2023. That’s when we are likely to see Tesla Motors launching a truly mass market car with a price tag of around $25,000.
Tesla Motors Inc (NASDAQ:TSLA) shares jumped 2.25% to $181.10 at 10:13 AM EST.