The Tesla Model 3 is a perfect example of a company choosing a stupid product name and realizing when it’s too late to change it. Case in point: Tesla today published a blog post titled “Model S or Model 3” for all those googling that exact query.
Tesla unveiled the Model 3 (base model is $35,000) in March 2016 with limited production scheduled to begin in July 2017. The Model S (base model is $60,000) was introduced in June 2012 and has been updated with a multitude of versions since.
Based on the price alone, you can tell which car is superior. But you simply can’t tell based on the name. In fact, the name is arguably misleading, because Tesla’s marketing team decided it would go with a number instead of a letter this time around, and that number could imply that the third model is better than the first two. In fact, Tesla says its Model S customers are asking whether they should trade in their car for a Model 3.
Ouch.
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The company’s answer spells it out for Model S owners: “While Model 3 will be our newest car, it isn’t ‘Version 3’ or the next generation Tesla. Our higher priced premium models still include the most advanced technology and the best driving experience we have to offer.”
But that’s not all. Tesla wants to make it crystal clear that if you have money to buy a Tesla S, you should continue to do so.
Just look at the difference in paragraph lengths the company dedicates to each model:
Model S is the leader in its class in every category, which is why 94 percent of our owners say they will buy Model S again. It has a 5-star safety rating and will continue to be our flagship Model with more range, more acceleration, more power, more passenger and cargo room, more displays (two) and more customization choices. With Ludicrous+, Model S has a zero-to-60 time of 2.28 seconds as measured by Motor Trend, making it the fastest accelerating production car in the world. Model S will also continue to be the longest-range vehicle we offer, capable of a landmark 335 miles on a single charge, meaning you can travel from Los Angeles to San Francisco nonstop.
Model 3 is smaller, simpler, and will come with far fewer options than Model S, but it makes driving feel effortless and offers a good range of at least 215 miles for our starting model.
Tesla is well aware that the Model 3’s price tag is what makes it so attractive. And the company is naturally worried about cannibalizing Model S sales.
The last sentence drives this point home: “And while innovation at Tesla will never stop, the very best vehicles we make are already available for purchase and on the road today.”
Translation: “Do you want, or already own a Model S? Please, please keep buying the Model S. The Model 3 is not for you.”
