Tesla Model 3 To Have $35K Cost And 200 Mile Range, Analyst Predicts

Trip Chowdhry of Global Equities Research circulated a note regarding Tesla Motors Inc TSLA's Model 3. With the unveiling event only a few weeks away, analyst excitement for the vehicle and the company have begun revving into high gear.

p>The official unveiling will be March 31, 2016, in Hawthorn, California, and according to recent research Chowdhry gathered after attending numerous Deep Learning Hackathons, the Autonomous Driving Symposium, the Material Science Symposium and the Battery Technology Summit, production and deliveries for the Model 3 are likely to be on schedule.

Model 3

It is anticipated that at the March 31 event, the Model 3 will be announced to cost $35,000, have a range of 200 miles and be produced and delivered late 2017.

Chowdhry explained two elements of the Model 3 that are unique and support the timeline for vehicle delivery by 2017: the vehicle architecture and composition.

Related Link: Tesla Analyst Calls Model X Test Drive "Incredible"

Vehicle Architecture: Chowdhry stated that the Model 3 will have "completely different vehicle architecture – both the chassis and the battery chemistry – hence will have different power density and energy density trade off."

Vehicle Composition: Unlike the Model X and Model S, the Model 3 body and chassis will be completely built of steel as opposed to aluminum. Chowdhry highlighted the key advantages of steel over aluminum as being the lower production equipment costs, the lower worker training/skill needed to work/operate steel, the lower compensation and cost savings of steel workers versus aluminum workers, and the lower repair costs.

Chowdhry concluded, reiterating, "Since Tesla Model 3 will be built using steel instead of aluminum, the production and deliveries for late 2017 will very likely be on schedule: steel is a lot easy [sic