In the coming years, electric vehicles will have to compete with the growing market of mass-market cars, which are increasingly designed and equipped with autonomous driving features, a new report claims.
The report by Lux Research, a London-based research firm that studies the future of transportation, claims Tesla’s Model 3, a $35,000 vehicle that will have an initial mass-production run in 2017, will compete with a new class of electric vehicles that are expected to cost less than $40,000.
“It will be a lot more affordable than the mass-produced cars, with much lower battery cost and lower emissions,” Lux said.
“That means the vehicles will be more affordable for the masses.”
The company said it expects the Model 3 will compete against the Nissan Leaf, Ford Escape, Toyota Prius, and other new vehicles in the market that are also expected to be affordable.
The Model 3 has a top speed of 155mph and a range of more than 220 miles, and the company plans to offer an all-electric range of up to 100 miles.
It also has a range that could exceed that of a Nissan Leaf for extended periods of time.
The company, which is owned by Chinese carmaker Daimler, will be selling the Model S sedan and the Model X crossover.
Lux noted that the Model P is already sold in the U.S. by Tesla.
The carmakers’ decision to offer electric vehicles in 2017 will have a significant impact on the industry, Lux said, because it will mean electric vehicles can compete with high-volume, high-emissions vehicles, like those powered by conventional gasoline engines.
Tesla will need to do a lot of work to sell the Model Model 3 and its Model X, Lux noted.
It’s likely that it will need a combination of more powerful batteries and a larger battery pack to provide a full-electric vehicle.
Tesla CEO Elon Musk has said that the company will unveil a range-extended version of the Model3 by the end of 2019.
The next wave is expected to come from the Japanese automaker Nissan, which last year announced plans to sell 500,000 Model 3s a year from 2019.