Tesla’s Model 3 Launch On Schedule: How Critical Is This For The Company’s Valuation?


 

Tesla Motors announced that its Model 3 vehicle will be unveiled on March 31, 2016, when the company will start accepting reservations for its mass market car. While the price of the car has been confirmed at $35,000, as expected, deliveries of the vehicle will start in late 2017.   According to our estimates, more than 30% of Tesla’s valuation is derived from the revenue the Model 3 will generate, once it becomes available in 2017. Hence, the success of this model is critical for the company. While General Motors will launch its Chevy Bolt, considered to be a direct competitor to Tesla’s Model 3 by the end of 2016, Tesla’s ability to succeed in the mass market will be key for its valuation in future.

Source: Forbes

-Hymer

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