A new report puts the release of the Tesla Motors Inc (NASDAQ:TSLA) mass market electric vehicle, pre-emptively titled the Model E, at the start of 2016. The piece, which came from Dutch newspaper De Telegraaf, was picked up by worldcarfans.com writer Michael Gauthier, and says that the car will have a range of 199 miles. That’s a little less than the shortest range Model S sedan.
The Tesla Model E, if that is what the vehicle is eventually called, will be a new venture for Tesla Motors Inc (NASDAQ:TSLA). It will mark the company’s first entry into the mass market. The new car will, according to the report, cost $35,000. The car will have to be lighter and cheaper than the Model S in order to boost margins and demand. It will have to do that without compromising on Tesla’s unique style and technological features.
Tesla mass market
A mass market vehicle is the holy grail for Tesla Motors Inc (NASDAQ:TSLA). With the small and brand-focused nature of the company, it will probably only get one chance at a release. The incredibly high valuation of the stock in today’s market shows an incredible amount of expectation for the Model E. If Tesla Motors Inc (NASDAQ:TSLA) doesn’t deliver, that gamble will simply not pay off.
Tesla Motors Inc (NASDAQ:TSLA) has had production difficulties with its coming SUV, the Model X. It has pushed back the production of the model in order to make sure it was done right and didn’t interfere with the company’s long-term strategy. Even if releasing in early 2016 is the plan right now, the company is likely to set that date back if it has production issues, or issues with its technology.
Tesla stock drop
Tesla Motors Inc (NASDAQ:TSLA) stock was increasing in value on today’s market for the first time in several days. The firm’s stock appeared to be deflating for the last few trading sessions, but today has seen the company add more than 3.5 percent to its value. Shares lost more than 10 percent in the five days preceding this morning’s open.
Tesla Motors Inc (NASDAQ:TSLA) is going to release a mass market car. It might be called the Model E, or it might be called something else, but the company is going to get the vehicle out there. How the stock will react in the space between now and that release is anyone’s guess.
