Exclusive: Insider News About The Tesla Model 3

We have got some insider news about Tesla’s compact sports sedan: the Model 3.

According to an engineer who works in Tesla and in charge of the AWD drivetrain development, the Model S P85D/85D/60D are byproduct of the Model X.

But for the Model 3, it looks like the initial cost estimate from CEO Elon Musk is too optimistic. Tesla told the media they are planning to sell the model 3 in the price range around $35,000. Below is a rendering of the Model 3 concept.

Tesla_Model3_Concept

However, there are some major issues happened inside Tesla now:

1. The battery pack supplier – Panasonic, raised the price of the battery

2. During the design and development, the engineering team found that: within the cost constraint of final product $35,000 pricing, it is very hard to make everything right. They originally plan to use aluminum frame, but was forced to changed back to the steel construction, which has a lower cost. But even with this compromise, right now they still cannot make the model 3 to be profitable if the price is as low as $35,000.

We are not able to get official confirmation of this insider news. But if it is true (which by no means we are claiming it is, or is not), this will be a disaster for Tesla.

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