Tesla Model 3: Elon Musk unveils the Model 3 to huge fanfare

The Model 3 won’t be delivered until late 2017 at the earliest, but a select few people got to take a ride in the new electric vehicle Thursday night.

In groups of three, the auto press and special guests were chauffeured along a half-mile track.

By general agreement, the car is sleek, silent and smart-looking. A comfortable five-seater, it was roomy enough to fit a 6’3” driver and leave leg room for the 6’ passenger behind him. The use of a single piece of glass to cover the rear seating area increased the roomy feeling.

The ride included a short straightaway section long enough to allow one burst of electric acceleration for which Teslas are deservedly famous.

At 10 p.m., after this reporter had taken his spin, there were still dozens of others eager to ride.

115,000 pre-orders was so one hour ago.

At the Tesla event in Hawthorne, a massive screen in the main hall continued to tabulate the number of Model 3 pre-orders taken worldwide.

More than 115,000 when Musk began his presentation, it had hit 132,000 around 10 p.m. and was still climbing.

Tesla raked it in Thursday, accepting 115,000 pre-orders of the Model 3 before the car was even unveiled to the public.

With the car boasting a starting price tag of $35,000, numbers-savvy people online were quick to point out that that’s a cool $4 billion for Tesla.

But not quite - people put down deposits of $1,000 with the option to cancel anytime.

Still, that’s a lot of dough.

All Model 3s are expected to come standard with supercharging.

Supercharger stations, located throughout the U.S., are billed as a way to let Tesla owners charge their cars within minutes.

By 2017, Musk hopes to double the number of superchargers and quadruple the number of destination chargers available to Tesla owners. That’s about 7,200 superchargers and 15,000 destination chargers.

Tesla has had trouble delivering its cars on time in the past, but Musk says things will be different with the Model 3.

The entrepreneur got a big laugh from the audience when he said the electric vehicle would be delivered next year and “I do feel fairly confident it will be next year.”

At $35,000, Musk promised “you will not be able to buy a better car, any better car, for less than that.”

Tesla Chief Executive Elon Musk, speaking to an adoring crowd of Tesla fans, pronounced the Model 3 a great success upon its birth tonight in Hawthorne.

Pulling the covers off the fourth vehicle in the company’s short history, Musk declared that more than 115,000 vehicles had been pre-ordered in the last 24 hours.

The lower, sleeker Tesla – at least 20% smaller in stature than its bigger brother, the Model S – will be able to go from 0 to 60 in less than six seconds in its most affordable configuration.

That version also will be fitted with Tesla’s “autopilot” features, which have helped the car be among the safest on highways.

Standing before a collection of new Model 3s, Musk reminded the audience that this car represents the culmination of a long-held dream to bring affordable, zero-pollution vehicles to the world’s highways.

Price: $35,000

Safety: 5-star safety rating in every category

Speed: Base model will go from 0 to 60 mph in less than six seconds, with some models that go faster.

Range: EPA rating of at least 215 miles per charge

Other features: autopilot hardware, fits five adults comfortably, front and rear cargo trunks

Under throbbing techno music mixed in with the Rolling Stones and Adele, Tesla fans gathered at the company’s design studio, next to Elon Musk’s SpaceX facility in Hawthorne.

Munching tuna tacos, Italian cold cuts and risotto cakes, under an increasingly chilly breeze, the most faithful of the faithful had arrived in their best branded Tesla - caps, jackets and windbreakers - evidence of earlier purchases.

But one jaded partygoer seemed unimpressed: “I don’t see any drugs and I don’t see any hanky-panky,” he said. “This isn’t a real party yet.”

As the Model 3 rollout event began, the most faithful Tesla customers were at the head of the line.

Many of them took advantage of the on-site computer terminals where they were able to lay down their $1,000 deposits and reserve their cars – for whenever those get built.

Surely some sort of record should go to father and son team David and Adam Metcalf of Florida. They had already put down deposits on 12 before their credit card balked – and they still had five more to order, in part for a research facility to which they are connected. When asked whom all of the cars were for, Mr. Metcalf Senior said, “I have a list.”

Other Tesla buyers of distinction included Jerry Roby and Paul Norris, both of Newport Beach.

Roby, who already owns a Tesla roadster, Model S and Model X, wants two Model 3s: one left-hand-drive car for his home in California, and one right-hand-drive car for his other home, in Wales.

Norris said he was also buying two, one for himself and one as a gift. “Not everyone can afford these cars, you know,” he said. “This will make a great gift for someone.”

“Model S sales have flattened, and Model X is turning into a disappointment, and now nothing is going to happen until the Model 3 comes out – probably not until mid- to late-2018,” carped hedge fund manager Mark Spiegel, of Stanphyl Capital Management, a long time Tesla doubter.

Given that, Spiegel said, the success of the Model 3 may not even help Tesla’s actual bottom line. The company sold more cars than ever in its 2015 fourth quarter, but experienced greater losses.

“The Model 3 will not save the company,” Spiegel said. “The Model 3 is going to speed up the end of the company.”

Tesla Motors and SpaceX CEO Elon Musk introduces a new line of residential and commercial batteries to a crowd of invited guests, media and Tesla fans at the automaker’s design studio in Hawthorne in 2015.

(Jerome Adamstein / Los Angeles Times)

What’s in store for the 150 media members and 650 Tesla owners invited to the exclusive unveiling of the Model 3?

Inside a tented party area at the Tesla Design Studio in Hawthorne, partiers will find space heaters, multiple bars pouring champagne and premium liquor, and pulsating electronic dance or techno music.

The food will be eclectic and lavish, if previous events are any hint. Look for microburgers and cones of French fries, sushi rolls and such.

There will be lines -- some people arrived as early as 3 p.m., when the first eager fans began forming a queue, according to sources not employed by Tesla.

The festivities begin officially at 7 p.m., 90 minutes before Musk is scheduled to make his appearance. But the Tesla CEO has been rock-star late for previous rollouts, and probably will be late tonight, too.

As Musk speaks, on a raised stage flanked by Model S and Model X cars, the covers will be ripped off the new Model 3, Tesla’s $35,000 electric car for the masses.

After his remarks, attendees can take test drives in Model 3, Model S and Model Xs on hand for the event.

Faraday Future, a Gardena-based electric-car startup that lured several former top Tesla executives, has positioned itself as a rival to Tesla and tipped its cap to how Tesla’s models and marketing effort are drawing eager would-be buyers.

Growing the electric-car market means “increasing people’s awareness about electric cars and further changing people’s perceptions” of the cars “being dull and boring,” said Nick Sampson, Faraday’s senior vice president of research and engineering.

“Tesla has done a fantastic job already of changing perceptions,” said Sampson, one of the former Tesla executives.

At first glance, interest in Tesla cars might look like a California thing, but even before today’s frenzy, there appeared to be people nationwide interested in buying a more affordable Tesla, an Edmunds.com analyst says.

The auto information company looked at all U.S. registrations of Tesla cars through January and found that new-car registrations were heavily concentrated in Los Angeles and the San Francisco Bay area.

But registrations of used Teslas are more widespread, with Dallas, Phoenix and Nashville among the areas where the pre-owned vehicles are popular.

“I think the lower price point [of a used car] makes it more affordable in a variety of places,” Edmunds senior analyst Jessica Caldwell said.

This bodes well for sales of the less-pricey Model 3, whose base price will be half that of the Model S, she said. “I think that shows there is a desire for Tesla,” Caldwell said. “It’s not just a California phenomenon.”

Dan Mitchell, 30, a graduate student studying business administration at UCLA, said he spent about 2 1/2 hours chatting with people in line at the Century City mall before he could place a pair of $1,000 deposits — one car for him and one for his mother.

This will be the first car he’s bought new, he said, and he’s eager to try its self-driving features.

“Based on their track record, I trust it will be an incredible vehicle,” he said.

He may have missed out on study time waiting in line, but he got a first-hand lesson in smart marketing, he said.

“The way Tesla has developed their customer experience — with the showroom, with Elon [Musk] out there shaking hands, test drives — is something I can bring back to the classroom and learn from,” said Mitchell, who is president of the school’s High Tech Business Assn.

He said Musk, the CEO, sought to shake hands with every individual in line and thank him or her for being part of the experience.

“An overall positive experience,” he said.

Tesla is in a league of its own when it comes to selling cars, analysts say.

“Other carmakers launch new models all the time, and I don’t remember ever seeing this level of excitement for any car, whether it’s a Honda or a Mercedes or a Rolls-Royce,” said Max Zanan, co-founder and chief executive of IDDS Group, an automotive consulting firm in New York.

Zanan noted that Tesla doesn’t really compete with traditional carmakers and has been able to carve out a customer base that doesn’t mind waiting for a Tesla.

Jessica Caldwell, director of industry analysis at Edmunds.com, said the long lines are a “first for the automotive industry.”

“This is the type of buzz that you see with ‘Star Wars’ movies or new iPhones or even cronuts,” Caldwell said, adding that the excitement is across the country — not just in Los Angeles or Silicon Valley.

Tesla will need to build volume “sooner rather than later” if it wants to be a mainstream, full-fledged car company, she said.

Kelly Anderson didn’t arrive at the Tesla store in Santa Monica until 9:30 a.m., but she didn’t have to wait in line long -- because she had hired someone via TaskRabbit to show up at 5 a.m. and save her spot.

She shelled out $18 an hour for the privilege and got a good night’s sleep, then swooped in half an hour before the store opened.

The 36-year-old art director from Santa Monica already has an electric vehicle: a Smart car painted hot pink. She said she’s planning to buy a pink cover for the Model 3, which she is looking to lease rather than buy.

Anderson said she likes the reduced footprint of electric cars and wants to try another one. “I like new things,” she said, laughing.

Some people waiting at the Tesla store in Santa Monica said they weren’t 100% certain they would actually buy the Model 3 -- they just wanted to make sure they had the option.

Marc Schoeplein, 52, an architect from Brentwood, said he wanted to pay the $1,000 deposit to reserve the right to buy the car but plans to keep his eye out for other good electric cars.

“It’s kind of no-lose,” he said. “The deposit is fully refundable.”

Schoeplein said he liked the look of the BMW i3 electric car and fully expects other good electric vehicles to come on the market in the next two years.

Dave Riley, a retired commercial pilot from Alaska, said he wouldn’t go through with the purchase unless he got the full $7,500 federal rebate. But that didn’t stop him from reserving two Model 3s.

Prospective Tesla Model 3 buyers are reflected on a window at the Tesla store. A Model S car shows through.

Kevin Cox, a 59-year-old from Northridge, was surprised to find a huge line of people outside Westfield Mall in Canoga Park waiting to put down $1,000 for a Tesla Model 3.

“This I did not expect,” he said.

He said he’s willing to put down the deposit even though the car hasn’t been revealed — and it may be some time before it’s delivered.

“The big thing is it will get me in the carpool lane,” Cox said.

By 10:30 a.m., there were more than 300 people in the line.

Andre Mercier, 30, was the first one out the door after finishing his order at the Tesla store in Santa Monica. The Los Angeles visual effects artist had gotten in line at 11 p.m. Wednesday night.

“I’m really excited,” Mercier said. “Now it’s a two-year waiting game.”

Mercier said he wanted to get in early so he could be among the first to eventually receive his car, to up the odds of recouping federal and state rebates. The governments have only limited pots of money set aside for the rebates.

Mercier is planning to splurge on Tesla’s Autopilot features. “It’s like having a chauffeur,” he said.

(Shan Li / Los Angeles Times)

Dency Nelson said he started texting his friend Paul Scott a few days ago to figure out their strategy for lining up. “Is it like Springsteen or the Rose Parade?” wondered Nelson, 64, a retired TV stage manager. In the end, he woke up at 4 a.m., drove from his Hermosa Beach home and got in line behind Scott.

Nelson said he got his first electric car in 2002: a Toyota RAV4. He’s since acquired a Toyota Prius and Nissan Leaf too. He and Scott are longtime advocates of electric vehicles and policies to encourage EV adoption, he said

Scott, 63, a former Nissan Leaf salesman, considered doing without a car and relying only on his electric motorcycle. But now he plans to get a fully loaded Model 3 -- as long as the final price doesn’t top $50,000 -- and then lease it to an Uber or Lyft driver, getting rides from that driver when necessary.

Sitting between Nelson and Scott was Dave Riley, 69, who flew in from Memphis, Tenn., on Wednesday to get a spot in line. The retired airline pilot said he normally buys used cars but couldn’t resist the allure of the first affordable Tesla.

Is this that “small token of appreciation” Elon Musk was tweeting about?

After drumming up excitement about tonight’s Model 3 unveiling event, the Tesla CEO mentioned Wednesday on Twitter that we won’t even get all the details until later.

He also promises a “small token of appreciation” for people who have waited in line.

Ray Nash of Placentia said he was so excited about ordering a Model 3 that he made sure a month ago that he could take today off work to get a good spot in line. When he arrived outside the Santa Monica store at 4 a.m., there were already six people ahead of him.

“I’m beside myself. I’m livid,” Nash said, beaming.

The 44-year-old director of a program for disabled adults acknowledged the absurdity of a group of people waiting to order a pricey product that they’ve never seen and that won’t even begin production before next year, but said he was “100% confident” he’d like the car. “No matter how it looks and how much it costs, I will purchase and enjoy it,” he said. “I feel it’s the future.”

Besides, he has plans for this car. “My 8-year-old daughter won’t ever drive a car powered by gas,” Nash said. “Her first car will be a Tesla. Her first car will be this one.”

Lance Nelson, 27, snagged the first spot in line at the Santa Monica Tesla store by arriving Tuesday at 3 p.m.. His friend Adam Kenney, 25, joined him a few hours later to keep him company.

Nelson, who makes a living promoting auto brands on Instagram, said he’s “beyond excited” to be a little closer to owning a Tesla car. “I’ve wanted a Tesla for a long time, but the Model S was definitely out of my price range,” he said.

Kenney, wrapped in a red fitted sheet against the chill, said that he originally joined Nelson in line just for moral support but that after more than a day of talking to Tesla enthusiasts, he decided he eventually wants one of the cars.

The two said they had only managed to get a few hours of sleep on a bench nearby. “We were jogging in place to keep warm,” Nelson said.

(Shan Li / Los Angeles Times)

At 7 a.m., about 50 people were camped outside the Tesla store on Santa Monica’s Third Street Promenade, waiting to preorder the Model 3 sight unseen.

A few were huddled in heavy-duty sleeping bags trying to catch a snooze. Many others were slouched in chairs, swathed in blankets to ward off the morning chill.

The store is set to open at 10 a.m.

(Yingzhi Yang / Los Angeles Times)

A Tesla store in central Beijing was not particularly crowded Thursday morning, but there was interest in the Model 3.

A 33-year-old IT engineer who gave only his surname, Wang, arrived at the store around 11 a.m. local time and made a down payment within five minutes.

He said he didn’t want a Chinese-brand electric car because he doesn’t trust the quality, but he seemed enthusiastic about the Tesla car. “Model 3 will cost me only 200,000 to 300,000 yuan. It’s cheap!” he said. “I won’t buy an expensive Tesla.... There’s no need to be extravagant on vehicles.”

Wang said he and his wife already have two cars each. The Model 3 will be their fifth.

Since the first preorders are being accepted only in person, the most eager buyers started waiting in line long before Tesla stores opened for the day. Above, people lounge in folding chairs outside a store in San Diego on Wednesday.

In other time zones, preorders have already begun.

Tesla originally intended its Model X as an early- to mid-2014 arrival, but the first units of the SUV were not delivered until late 2015.

The SUV’s heralded “falcon wing” doors, which lift straight away from the vehicle and make it possible for it to be parked in tight spaces, proved a design difficulty and helped delay deliveries. CEO Elon Musk later said he wasn’t sure whether Tesla “would make a car like this again.”

The Model 3 has not gone into production yet, so it’s unclear whether unforeseen complications lurk.

Tesla’s previous vehicles can really accelerate. The Model S and Model X have the distinction of being the quickest four-door vehicles on the planet, with faster zero-to-60 acceleration times -- at or under 3.2 seconds -- than any other production cars, including internal combustion muscle cars made by Detroit automakers.

(David Undercoffler / Los Angeles Times)

Despite difficulties, Tesla’s Model S, which debuted in 2012, is the world’s bestselling plug-in electric car, and it has been the darling of critics.

In 2013, the sedan won Motor Trend’s and Automobile Magazine’s Car of the Year award. Before dependability issues became apparent, the car received Consumer Reports’ highest possible rating. And last year it topped AAA’s list of best green cars.

Read More

A Tesla Model S sedan.

(Paul Sakuma / Associated Press)

Sometimes accused of behaving more like a tech company than an automaker, Tesla has made a habit of getting its products to buyers as early as possible in the production schedule.

The downside: Some early adopters have experienced software, hardware and fit and finish problems. These have sometimes involved simple over-the-airwaves software updates. In other cases, they have required the replacements of batteries or entire drive trains.

In October, Consumer Reports withdrew its recommendation for the Tesla Model S — a car the magazine previously raved about — because of poor reliability.

Read More

Tesla has typically begun a production run by making the most expensive versions and trim lines of its cars, with the most powerful batteries and motors, and waiting until somewhat later to produce more affordable versions.

The first Model X vehicles to be delivered to customers cost more than $132,000, according to reports -- well above the $80,000 base price.

The Model 3 is actually Tesla’s fourth vehicle. The company entered the electric car market in 2008 with the Roadster, following that in 2012 with the Model S sedan and in 2015 with the Model X SUV.

Tesla’s CEO originally wanted to call this car the Model E, so that the company’s three main vehicles would spell out S-E-X. But a car company that had already trademarked a Model E protested.

Read More

(David Butow / For The Times)

Tesla vehicles are all assembled in the company’s state-of-the-art factory in Fremont, north of San Jose.

Now housing some of the world’s largest industrial robots, the vast 5.3-million-square-foot facility was formerly a joint-venture manufacturing plant used by General Motors and Toyota.

Read More

Few details have been revealed so far, but the car is essentially a scaled-down, half-priced version of Tesla’s $70,000 Model S. The vehicle represents Tesla CEO Elon Musk’s dream of bringing affordable, pollution-free transportation to a world he sees choking to death on its own fumes.

Tesla has said the car will travel up to 200 miles on a single, plug-in electric charge and will retail from as low as $35,000. Qualified buyers could receive up to $10,000 in federal and state sales incentives, rebates or tax breaks.