Electric cars so far have been the darling of the tech world. The typical “desirable” electric car has been the high-end Tesla Model S luxury sedan which has a retail price that goes beyond the reach of the average joe. Tesla recently unveiled their brand new affordable electric vehicle – the Tesla Model 3 and in this article, we will highlight why the Model 3 will pave the way for widespread adoption of electric vehicles globally.
In the tech world, there is a process through which advanced technology reaches the average consumer in an affordable package. Typically, a company releases something that is very high-tech and made specifically for enthusiast users or serious industrial purposes. These products are usually very expensive and so they can only be bought by those holding serious capital. Over time the manufacturing of such technology becomes more simplified and so more cost effective. Breakthroughs in the manufacturing process slowly lead to a trickle-down effect whereas the technology begins to show up in mass market products for the general consumer.
Tesla CEO Elon Musk’s “Master Plan” is exactly as highlighted above. The company first made a very expensive electric sports car and used the money and experience to make the luxury Model S sedan. After years of refining their techniques, they were able to design and manufacture a car that is far cheaper than its predecessors but still uses some of the hallmark technology and design that made Tesla the automotive giant that it is today.
The Model 3 will cost $35,000 for the basic trim. That may sound like a lot of money but the price tag is within reach of a very large majority of buyers internationally. You may ask how this has anything to do with the future of the car market in Bangladesh but do not worry, we have a solid argument. The arrival of the Model 3 is signaling a new era for the automotive industry. Companies like Volkswagen, Chevrolet, BMW and much more have already committed to bringing their own versions of electric vehicles to the market very soon. With more competition for Tesla, prices are bound to drop around the industry while the heavyweight’s battle to gain control of a more progressive user base that is looking for an environmentally friendly yet exciting new vehicle.
When prices reach a point where electric vehicles cost as much as if not less than competing fossil fuel powered alternatives, the market is likely to shift toward the more efficient and appealing choice. At this point, all major car manufacturers will be forced to have some form of electric vehicle on their roster for the sakes of being relevant in the new market. When the likes of Toyota or Honda enter this segment in full swing the Bangladeshi market will slowly be coaxed to adopt the new global trend.
While at the moment the Model 3 may seem to be a product for more developed markets, it is, in reality, the harbinger for a new generation in the automotive world. Widespread adoption of electric vehicles will not occur overnight. However, with the passage of the next decade, it seems more likely that our future will be an electric one.