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Tesla Model 3 has an important upper middle class audience to please
As Elon Musk continues to focus on his top 3 priorities for Tesla, emphasis on preparing for Model 3 production – arguably the most important vehicle in the company’s history – couldn’t be more pertinent.
The Model 3 will be emblematic of Tesla’s capacity to offer a highly safe and efficient means of transport for a middle to upper middle class segment that largely depends on vehicle reliability in order to commute. It looks like these upwardly mobile folks are buying into that Tesla promise (pun intended): by October 2016, nearly 400,000 reservations had already been placed on the Tesla Model 3.
Starting at $35,000 before incentives, the Model 3 will achieve a minimum of 215 miles of range per charge and has been designed to attain the highest safety ratings in every category. According to the Tesla website, “The Model 3 combines real world range, performance, safety, and spaciousness into a premium sedan that only Tesla can build.” Potential Model 3 buyers make a reservation through the company’s website by putting down a $1000 deposit. The Model 3 has a starting price of about half the base price of the flagship Tesla Model S and has the size and stance of the Mazda 3.
Jessica Caldwell, an Edmunds.com analyst, argues that, if Tesla Motors wants “to bring the EV to the mass market, they need the Model 3 to be successful.”
The Model 3 will be a sedan, although other versions may one day include a Model Y compact SUV. Base rear-wheel-drive Model 3 vehicles are expected to achieve at least 215-miles of range; all-wheel drive will be offered, and a larger battery capacity with longer range is expected. Tesla’s Full Self-Driving Capability is also expected to be a standard offering.
“This is their chance to prove that they are not just a specialized niche automaker, but actually a long-term volume automaker,” said Karl Brauer, an analyst at Kelley Blue Book. “They have to establish that they can build a high-quality volume vehicle.”
Being upper middle class is a swirling confluence of financial comfort, identity, dreams, and lifestyle options. The Tesla Model 3 may very well become one of the most significant markers of status stability, with its associated components of having a college education, white-collar work, economic security, and home ownership. Soon, many upwardly mobile consumers will be adding “owning a Tesla” to that definition. Indeed, fewer than 5% of reservation holders are likely to choose a minimalist entry level Model 3 car. By contrast, close to 7% say they intend to check every available check box in the Model 3 Design Configurator once it becomes available.
If there’s an option available, the future upscale Tesla Model 3 audience will get it, as the number of options will be new indicators of levels of wealth and class.
Of course, these soon-to-be Tesla owners will have high expectations for all aspects of the Tesla process. First production of Model 3 is still scheduled for mid 2017, while delivery estimates for new reservations are expected to take place mid 2018 or later. Musk admitted that Tesla had hubris in designing and engineering the complicated Model X. As a result, Tesla learned a lot about selling, building, and delivering, which it applied to the Model 3 with much greater production streamlining. “With any new technology, it takes multiple iterations and economies of scale before you can make it affordable,” Musk has said. A mass-market car “was only possible to do . . . after going through the prior steps.”
The Model 3 is the next step in the learning process, but Tesla has done the preparation.
The Model 3 was unveiled in March of 2016 with operational prototype cars. In anticipation of much higher delivery numbers associated with the Model 3, Tesla hired former Audi executive Peter Hochholdinger as its Vice President of Vehicle Production. Hochholdinger had been in charge of production for the A4, A5, and Q5 vehicles, with around 400,000 vehicles per year under his watch. He should be a key asset as Tesla looks to roll out Model 3s in quantities that far exceed the number of cars the company has made to date.
Tesla has dealt lately with some supplier issues and has brought production of some components in-house. Other components, however, continue to be manufactured by established companies. For example, reports indicate that the Model 3’s center touchscreen will be supplied by LG Display.
By spring 2017, Model 3 photos and videos — shot both by bystanders and insiders — should start to circulate. Eventually, too, the government will need to ascertain the safety of Model 3 via crash-testing, and resulting reports will have a big impact on eventual delivery dates.
The Model 3 sedan will use some of the same glass technology that the company is using for its solar roof tiles, which should introduce an upper middle class audience to new ways of thinking about residential energy systems. The Model 3 is said to accelerate with an alluring still rush. It is just that rush— as well as zero-emissions and self-driving capability— that the upper middle class market has been awaiting.
Elon Musk
Elon Musk says Tesla will take Safety Drivers out of Robotaxi: here’s when
“The safety driver is just there for the first few months to be extra safe. Should be no safety driver by end of year.”
Tesla CEO Elon Musk said today that the company plans to completely eliminate Safety Drivers from its Robotaxi fleet, which differs from the Safety Monitors it uses.
Tesla’s Robotaxi platform utilizes employees in the front passenger seat during city rides in Austin and the driver’s seat of the vehicles during highway operations in Austin, as well as during all rides in the Bay Area.
Tesla adjusts Robotaxi safety monitor strategy in Austin with new service area
Musk said the presence of a Safety Driver “is just there for the first few months to be extra safe,” but there are plans to remove them in an effort to remove the crutches the company uses during the early stages of Robotaxi.
The CEO then outlined a timeframe for when it would remove the presence of an employee in the driver’s seat in both Austin and the Bay Area. He said there “should be no safety driver by end of year.”
The safety driver is just there for the first few months to be extra safe.
Should be no safety driver by end of year.
— Elon Musk (@elonmusk) September 4, 2025
Having a Safety Driver or Monitor has been a major point of criticism from Robotaxi skeptics and Tesla critics.
However, Tesla has maintained that its priority in the early stages is the safety of riders, which will keep things running; even a single negative incident could derail self-driving efforts as a whole, including those outside of the company.
Tesla executives have said their attitude toward safety is “paranoid,” but for good reason: an accident could set back the progress that it and many other companies, including rivals like Waymo, have made in the past few years.
For now, it might be a point of criticism for some, but it’s smart in the near term. Musk plans for Tesla to have Robotaxi operating for half of the U.S. population by the end of the year as well, so it will be interesting to see if it can maintain these timelines.
News
Tesla is already giving Robotaxi privileges hours after opening public app
This morning, Tesla launched the app in the Apple Store, giving iOS users the ability to download and join a waitlist in hopes of gaining access.
Tesla is already giving Robotaxi privileges to those who downloaded the app and joined its waitlist just hours after it launched in the United States.
As the Robotaxi platform has been operating in Austin for several months, Tesla is now allowing the general public to download its app and call for a driverless ride in the city.
Tesla Robotaxi makes major expansion with official public app launch
The company previously sent invitations to select media outlets and Tesla influencers, seeking initial feedback on the performance of the Robotaxi platform.
There have been positive reviews, but, as with any Beta program, some mishaps have also occurred, although none have been significant.
As of the writing of this article, the City of Austin only lists one incident involving a Tesla Robotaxi, noting it as a “Safety Concern,” but not an accident or collision.
This morning, Tesla launched the app in the Apple Store, giving iOS users the ability to download and join a waitlist in hopes of gaining access.
Tesla is already granting Robotaxi access to several of those who have downloaded the app and gotten on the waitlist early:
Been getting a lot of messages from people who downloaded Tesla’s new Robtoaxi app last night and already have access to the company’s robotaxi and ride-hailing services. pic.twitter.com/xgbki1D3Lw
— Sawyer Merritt (@SawyerMerritt) September 4, 2025
With the launch of the public app, we were not too sure how soon Tesla would be able to initiate bringing more riders into the Robotaxi program. The immediate admittance for some riders just hours after the launch is a big positive and is surely a sign of strength for Tesla and its Robotaxi program.
What many will look for moving forward is the expansion of the geofence, which does not seem like a problem, as Tesla has already managed to do this on three occasions. The most recent expansion has expanded the service area to approximately 190 square miles.
People will also look for evidence of fleet expansion, a concern that has been a concern for many, especially since Tesla has not been completely transparent about it. They have revealed a recent service fleet growth of 50 percent, but there has been no specific number of vehicles mentioned.
News
Tesla explains why Robotaxis now have safety monitors in the driver’s seat
The update to Austin’s safety monitors became a point of interest among Tesla watchers on social media.
Tesla has provided an explanation about the presence of safety monitors in the driver’s seat of its autonomous Robotaxi units.
The autonomous ride-hailing service is currently being deployed in Austin and the Bay Area, with more cities across the United States expected to gain access to the service later this year.
Safety Monitors
When Tesla launched its initial Robotaxi program in Austin, the company made headlines for operating vehicles without a human in the driver’s seat. Even with this setup, however, Tesla still had safety monitors in the passenger seat of the Robotaxis. The safety monitors, which do not interact with passengers, have been observed to report issues and other behaviors from the autonomous vehicles in real time.
Safety monitors on the driver’s seat were also employed in the service’s Bay Area rollout, though numerous members of the EV community speculated that this was likely done to meet regulations in California. However, with the expansion of the Austin geofence, riders in Tesla’s Robotaxis observed that the safety monitors in the city have been moved to the driver’s seat as well.
Tesla’s explanation
The update to Austin’s safety monitors became a point of interest among Tesla watchers on social media. Longtime FSD tester Whole Mars Catalog, for one, speculated that the move might be due to Texas’ new regulations for autonomous vehicles, which took effect recently. Interestingly enough, the official Tesla Robotaxi account on X responded to the FSD tester, providing an explanation behind the safety monitor’s move to the driver’s seat.
“Safety monitors are only in the driver’s seat for trips that involve highway driving, as a self-imposed cautious first step toward expanding to highways,” the Tesla Robotaxi account noted.
Tesla has been extremely cautious with its autonomous driving program, particularly with the rollout of its Robotaxi service, which use Unsupervised FSD. This is quite understandable considering the negative media slant that Tesla is consistently subjected to, which could very well result in minute incidents or mistakes by Robotaxis being blown out of proportion.
Elon Musk says Tesla will take Safety Drivers out of Robotaxi: here’s when
Tesla is already giving Robotaxi privileges hours after opening public app
Tesla explains why Robotaxis now have safety monitors in the driver’s seat
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