First Affordable Tesla Model 3 Hatchback Could Reportedly Arrive Soon

U.S. electric vehicle maker Tesla could reportedly release an even cheaper electric car, according to a new report. This was hinted by Tesla CEO Elon Musk when he told investors earlier that the company's cars are not affordable enough. Additionally, Volkswagen recently launched the ID 3 in Europe, which is far more affordable than any tesla vehicle and there is a chance that Tesla might release its own Model 3 hatchback to counter this.

U.K. website Autocar reported that the U.S. electric vehicle maker might have a response to Volkswagen. It further speculated that the vehicle could be already in the works. Tesla is opening a factory in Germany and would go online by 2021 and rumors have it that it could serve as the facility for building smaller and cheaper Model 3 Hatchback, the report added.

Autocar's report about a possible Tesla Model 3 hatchback may have been based on Musk's recent statement. The CEO is aware that consumers want a slower and more affordable electric car. During the recent investors call, the CEO said that Tesla would not succeed in its mission if it would not make its vehicles affordable.

He noted that "the thing that bugs me the most about where we are right now is that our cars aren't affordable enough. We need to fix that." Musk also teased that it would be reasonable to assume that Tesla would develop a compact vehicle of some kind. He added that it could probably be a higher-capacity vehicle of some sort.

As per Autocars, it could be a restyled and adapted version of the Tesla Model 3. The said vehicle is reportedly targeted to meet the requirements and tastes of the European market. If this happens, the Tesla Model 3 hatchback could challenge models like the VW ID3 hatchback and other compact electric vehicles like Citroen and Peugeot, among others.

How affordable is the rumored Tesla Model 3 Hatchback model? According to the report, the upcoming electric compact vehicle from Tesla might directly compete against VW ID3 and Peugeot e-208. The new ID 3 would sell at £27,500 in the U.K. or roughly $36,000. A genuinely affordable Tesla should not be a stripped-down version of the Model 3 to meet the $35,000 base price technically.

This is not the first time that the industry heard about a compact and cheaper tesla vehicle. Earlier this year, Tesla unveiled a sketch for a city car of some kind and started hiring to design "Chinese-style" vehicles. A simpler, much smaller E.V. for China could potentially influence a similar vehicle launching in Europe. Tesla has not yet commented on the recent claim that it is working on Tesla Model 3 Hatchback.