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John Goreham    December 13, 2017 - 10:42AM

In reply to by Serge (not verified)

Serge, thanks for the opportunity to expand on the Civic Hatchback reference in the story. It is key to the point about pricing and volume. Tesla's Model 3 will be similar in many measurable ways to the BMW 3 Series (which has a huge range of performance). However, Tesla has not promised BMW 3 Series sales volumes. BMW only sells about 6,000 3 Series cars in the US each month. That would be great for an EV, but terrible for any "mainstream" volume car. Tesla has instead promised to ship 5,000 Model 3 cars per WEEK starting this month of December. There are only a handful of car models in the U.S. market that reach that massive volume. The Civic is one. And it has a similar size to a Model 3 and has similar performance in many ways to the proposed specifications of the Short-Range Tesla Model 3 Tesla has promised to someday build. If Tesla's Model 3 only reaches the sales volume of the BMW 3 Series it will be an utter failure by Tesla's own metrics. Tesla has promised to be delivering more Model 3 cars than the entire segment that BMW leads. The combined sales of the BMW 3 Series, Audi A4, Lexus IS, Mercedes C-Class, Infiniti Q whatever, and all the rest. So far it has not sold more than a few hundred in any given month. But Tesla does have a huge number of reservations. The problem, so far, is production.

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