Mainstream Model 3 holds promise and peril for Tesla

FREMONT, Calif. (AP) – For Tesla, everything is riding on the Model 3.

The electric car company’s newest vehicle is set to go to its first 30 customers Friday evening.

At a starting price of $35,000, the Model 3 is half the cost of Tesla’s previous vehicles. That and its 215-mile range could bring hundreds of thousands of customers into Tesla’s fold.

But analysts warn of potential pitfalls. Tesla had quality problems even when producing vehicles on a smaller scale. And the compact Model 3 may be less appealing as other electric models go on sale, like an upcoming Audi SUV.

Limits on U.S. tax credits could also dampen demand. The $7,500 credit phases out after an automaker sells 200,000 electric cars in the U.S. Tesla has sold more than 126,000 cars since 2008.

We welcome thoughts and comments from our viewers. We ask that everyone keep their remarks civil and respectful. Postings that contain profanity, racist, or potentially libelous remarks will be deleted. We will delete any commercial postings, as well.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s