A new report says the electric car market could be on the cusp of a major surge in sales by the end of 2018, with consumers poised to shell out as much as $1,500 for the Model 3.
But that will come with a catch: a price tag that will be considerably lower than the $35,000 Tesla Model S, which starts at $80,000 and is the only car on the market that’s not built by Tesla.
The study, conducted by the National Automobile Dealers Association and published Wednesday, shows that in the fourth quarter of 2018 alone, electric car sales in the U.S. totaled about 17.5 million vehicles.
That would be the most in six years and the first time that’s happened in the industry.
In the same period last year, the industry was booming, with more than 10 million electric cars on the road in the United States, according to NADA.
But that figure includes just about every other electric car on sale in the country, with many smaller models on the way.NADA, however, cautions that it’s too soon to say whether the Tesla Model 3 will have the kind of surge in demand it has seen so far.
The industry is still months away from rolling out the Model S and the Model X, which will both be electric, to dealerships.
But the study points out that there are already signs that the market is in a frenzy, with the average selling price for the new Model 3 at more than $100,000.
And the price tag is much higher than the roughly $35k for the Tesla S, with one electric car priced at $110,000, while another costs $130,000 or more.
The Model 3 is the first new electric car from a major automaker in nearly a decade.
Its launch has generated a wave of excitement and even envy from consumers and analysts.
But for a company that has struggled to turn a profit in the past, the Model III may not be as popular as its rivals.
For more than a decade, Tesla has struggled with growing competition in the market for electric cars.
With its vehicles offering lower prices, faster charging times and greater range than conventional cars, they have become the go-to electric option for people who want the most bang for their buck.
But despite their appeal, the company has struggled for years to gain traction with customers.
It lost $50 billion in the first quarter of 2019, a loss that was attributed to a combination of poor performance and a series of missteps, including a price hike that cost it around $200 million.
The company has also struggled to gain more mainstream customers, including with consumers who had already embraced EVs such as the Chevrolet Bolt, Nissan Leaf and Tesla Model X.