The long-term fate of Tesla Inc (NASDAQ:TSLA) largely rests on the success of its upcoming Model 3 car, which will be its first truly affordable mass market offering.
Its prospects for success may have just gotten a little dimmer, however, with German luxury carmaker BMW reportedly planning an all-electric 3 Series car of its own. Electrek has some details on the development:
An electric BMW 3 Series has long been rumored and it would make sense to bridge the gap, but it never officially appeared in the company’s plan, while they were not shy about confirming plans for an all-electric BMW X3.
Now German newspaper Handelsblatt reports citing company sources that an electric BMW 3 Series is planned and should be unveiled as soon as in September at the IAA auto show in Frankfurt.
If the rumors are true, Frankfurt could be an interesting show for electric vehicles since Honda, Jaguar, Mercedes-Benz and Volvo are all also rumored to unveil EVs at the event.
Depending on production and delivery schedules, BMW could conceivable beat Tesla’s Model 3 to market — at least in terms of actual deliveries to customers. Many would-be Tesla users will have to wait years to receive their Model 3s, even if they plunked down a $1,000 deposit on the very first day. Many even risk missing out on the key $7,500 EV tax break as a result.
The pressure is mounting for Tesla to live up to its production goals. Unlike its more established auto rivals, Tesla is starting from scratch with its assembly lines, with no experience in producing cars at a mass scale.
The company delivered just 25,000 vehicles in the first quarter. It’ll need to do much better than that very soon, before it loses its early mover advantage and its competitors flood the market with new high-end EVs of their own.
Tesla Inc shares rose $0.95 (+0.26%) in premarket trading Thursday. Year-to-date, TSLA has gained 73.73%, versus a 9.94% rise in the benchmark S&P 500 index during the same period.