FCA Already Wants To Copy The Tesla Model 3

Rumor

The Model 3's business case just seems too good to be true.

Even though the production Tesla Model 3 is over one year away, many people would already call it a success. Tesla took over $11 billion in preorders in just the first week alone. With a base price of $35,000 and an average order price of $42,000, this is a staggering success for Tesla. Other manufacturers have already taken notice. FCA CEO Sergio Marchionne said that "I'm not surprised by the high number of reservations but you have to then build and deliver them and also be profitable." Clearly Marchionne shares some of our skepticism.

Marchionne seems to think that Tesla will have trouble being profitable with a $35,000 base price. However, if Tesla CEO Elon Musk can prove that the Model 3 will be profitable, then FCA "will copy the formula, add the Italian design flair and get it to the market within 12 months." Clearly FCA is waiting with baited breath to see how the Model 3 does, and we bet the rest of the auto industry is just as curious. Do you think the Model 3 will be a success? If so, do you think other manufacturers would be smart to copy it? We kind of like the idea of a sexy Italian version of the Tesla. It would definitely give the Californian EV some much needed competition.

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