[APPLAUSE] - Good evening, everyone here. [CHEERING] And out there on the internet. My name is Franz von Holzhausen. I lead the design team here at Tesla, and I'm excited to welcome you to the Tesla Design Studio here in Hawthorne, California. We are here tonight to talk about Model 3. But we wouldn't be here without years of intense drive and passion from the Tesla team and leadership on an unwavering mission. Ladies and gentlemen, on behalf of all of my colleagues here at Tesla, it is my honor to welcome to the stage Mr. Elon Musk. [CHEERING] [MUSIC PLAYING] - Hey. Everyone. All right. All right. Well, welcome, everyone. Welcome, everyone, to the Model 3 unveil. [CHEERING] We have an amazing product to show you tonight. I think you're going to be blown away. But I want to start talking-- just preface this by talking about why are we doing this? Why is Tesla-- why does Tesla exist? Why are we making electric cars? Why does it matter? It's because it's very important to accelerate the transition to sustainable transport. It really, really, really is. I mean, this is really important for the future of the world. We have record high CO2 levels. We recently passed over 403 parts per million of CO2 in the atmosphere. You can see the chart and it looks like a vertical line and it's still climbing. And the last time there was this level of carbon concentration was 11 million years ago. That was approximately when primates started walking upright. The world was very different. We do not want to return to that situation. And what that CO2 increase results in is a steadily increasing temperature. So we've already increased by 2 degrees. In fact, that doesn't tell the whole story, because the extremes of temperature increase by as much as 20 degrees. And that line is going to keep going for some time into the future. It's really important. It makes a difference if we accelerate the transition to sustainable transport. And beyond global warming, there's just the fact that combustion cars emit toxic gases. And according to an MIT study, there are 53,000 deaths per year in the US alone from auto emissions. So it stands to reason that if a vehicle is spewing toxic gas, that's obviously bad for your health. And so to address this, what we came up with for Tesla was what we called the secret master plan. [APPLAUSE] So this is the first blog that I ever wrote for the company. And it was originally a three step. It was originally a trilogy. Now it's a four part trilogy, as it turns out. But we needed to figure out how could we as a tiny company with very few resources actually make a difference. And the only way to do this was to start small, to start with a low volume car, which is why we started with the Tesla Roadster. [APPLAUSE] So with any new technology, it takes multiple iterations and it takes economies of scale before you can make it great and affordable. So step one was the Roadster. The Roadster was high price and low volume. But where it really made a difference was that it showed people, it showed the world that you could make a compelling electric car. You could make a great electric car. But what was unique about the Roadster it was the first really great electric car. And before the Roadster, people thought an electric car would be slow and ugly and low range and have bad performance. And we had to break that mold. It was incredibly important to show that that wasn't true. And so we made the Roadster, which is fast. It's beautiful. It's great performance. For those of you who bought the Roadster, thank you. [APPLAUSE] Woo. And we only made 500 units a year, because that's all we really could make for the Roadster. But it had a very leveraged effect. In fact, Bob Lutz, the former Vice Chairman of GM, actually credits the Roadster with the Chevy Volt program, which then led to the Nissan Leaf program. And really, even though we were making very few cars, it actually had quite a huge leveraged effect on the auto industry. But there was still a lot more to do. And a lot of people said, well, the Roadster is nice, but it's sort of a toy and it's very expensive, and you couldn't really make a car that people would use every day or a car that could really compete against the great combustion sedans of the world. So we thought, OK, we're going to make the Model S. [CHEERING] So the Model S, any of you drive Model S? [CHEERING] Thank you. So it's a great sedan. It can seat up to seven people, five adults and two kids. It's tested by Road & Track and MotorTrend and others as the fastest four door car in history ever. [APPLAUSE] And it's got great handling. It's got great technology. It's got things like autopilot. And really, it was rated by almost every group as the best car in its year and by Consumer Reports as the best car ever. [CHEERING] And again, the reason for that is it's not just to achieve some superlative in cars, but to show what an electric car can do, because nobody believed that an electric car could do this. So what was really important was to show-- the reason it was important is not to achieve awards or anything like that. It was to just show the car industry, show the world that an electric car really can be the best car. That's what really mattered. And now for cars, about half the market wants a sedan and about half the market wants an SUV. So we thought, well, we'll extend the Model S platform into the Model X. [CHEERING] Now, both of these are very important, because the revenue from the Model S and the X is what's needed to develop the Model 3. So the Model 3 with very high volume and all the engineering needed to achieve the cost reductions and the capabilities, it costs billions of dollars. So the S and the X are what pay for that Model 3 development. So I just wanted to say for all of you who have bought an S or an X, thank you for helping pay for the Model 3. [CHEERING] So the Model 3 is happening because of you. And so we actually have an S and an X on the side there. And has, of course, the falcon wing doors, which did cause us some challenges. But now they're working. [APPLAUSE] So now then, going from the S and the X, we come to step three, or the final step in the master plan, which is a mass market, affordable car. It was only possible to do that after going through the prior steps. But we're here and we're here to show that to you tonight. [CHEERING] So I'm going to describe some of the aspects of the Model 3 and then-- yeah, so let's move to describing. Well, so let's show the master plan again. OK, so that's the master plan with steps 2 and 2.5. And now going to the Model 3. First of all, I want to start off by saying the Model 3 is going to be an incredibly safe car. We really believe at Tesla that safety has to come first. We care about you. We want you to be safe. We want your friends and family to be safe. This is paramount. The Model 3 will not just be five star on average. It will be five star in every category. [APPLAUSE] And even the base model of-- even the base Model 3 will do 0 to 60 miles an hour, or 0 to 100 kilometers an hour in less than 6 seconds. At Tesla, we don't make slow cars. And of course, there will be versions of the Model 3 that go much faster. And in terms of range, the range will be at least an EPA rating of 215 miles. [APPLAUSE] I want to emphasize these are minimum numbers. We hope to exceed them. [APPLAUSE] All Model 3's will come standard with autopilot hardware. [APPLAUSE] And all autopilot safety features will be present in every car. You won't need to buy an option. The autopilot safety features will always be there. [APPLAUSE] The Model 3 also fits five adults comfortably. Now, comfortably is the important part here. The challenge, obviously, with building a smaller car is how do you still make it comfortable with a bunch of people inside? So there are two important design steps we did with the Model 3 to achieve that. One was to move the instrument panel or the firewall. There really isn't a firewall if you don't have a big combustion engine in front. We moved the front seats forward and compressed the instrument panel. When you do your rides tonight, you'll see what I mean. You're sitting a little further forward. It actually feels great on the front seats. That's what gives you the legroom to have five adults. And so the first and second row have plenty of legroom. Then on the rear roof area, it's actually one continuous pane of glass. And the reason that that's great is because it gives you amazing headroom and a feeling of openness. So it has, I think, by far the best feeling, best roominess of any car in the size. Then in addition, it has, just like the Model S, it has front and rear trunks. [APPLAUSE] It has more cargo capacity than any gasoline car of the same external dimensions. And yeah. [APPLAUSE] You can actually-- somebody asked me this question recently. Can you fit a seven foot long surfboard on the inside? The answer is yes, you can. [APPLAUSE] Then, with respect to supercharging, all Model 3's will come with supercharging standard. [APPLAUSE] So the reason supercharging is very important, as many of you know, is that it gives you freedom of travel. It means you can conveniently go where you want, where you want, how you want. And a lot about having a car is it's about freedom. It's about going where you want to go. And so the superchargers are critical to that. So we're now at the point where we've built out over 3,600 superchargers worldwide. And about the same number of destination charges. That's present day. By the end of next year, we will double the number of superchargers. [CHEERING] And quadruple the number of destination charges. So you will be able to go virtually anywhere. And in fact, because the onboard charge of the Model S is able to adapt to any country's voltage and amperage, wherever you go in the world, if there's electricity, you can charge. [APPLAUSE] So then what about buying and servicing? So where we are today with Tesla is we've got 215 locations in Asia, North America, and Europe. And by the end of next year, we expect to more than double that to 441 locations. [APPLAUSE] The key point being almost no matter where you are in North America, Europe, or Asia, if you're near any even mid-size metro area, you'll be able to buy a car and get your car serviced. Now, how are we going to make these cars? OK, good question. [LAUGHS] We need to achieve high volume production. So this is in two parts. First, there is the vehicle factory. So our Fremont factory in the past has actually made almost 500,000 cars a year. So we're confident that Tesla can achieve that number in the future in terms of vehicle production. So I think that's going to be I wouldn't say straightforward, but very doable. And then what about batteries? Because in order to produce half a million cars a year, we would actually need the same battery production. We basically need to absorb the entire world's lithium ion production. That's why we are building the Gigafactory. These are the recent pictures of the Gigafactory. This is a vital element. So to give you a sense of scale, the Gigafactory will actually have the largest footprint of any building of any kind. Volumetrically, it will only be second to the Boeing factory in Washington. So this is really quite an enormous facility. In fact, it will produce more lithium ion batteries than all other factories in the world combined. There's one location. So we're talking about 50 gigawatt hours a year of production. And it won't just be at that volume, but it'll also be producing the most advanced cell and battery in the world. So it's the combination of high volume with the most advanced technology is what enables us to make the Model 3. And it's already operational today. [CHEERING] So when are deliveries? Well, they're next year. [CHEERING] So I do feel fairly confident that it will be next year. [LAUGHTER] And then in terms of price, well, of course it'll be $35,000. [CHEERING] And I want to emphasize that even if you buy no options at all, this will still be an amazing car. You will not be able to buy a better car for $35,000 or even close, even if you get no options. So it's a really good car, even with no options. So do you want to see the car? [CHEERING] Well, we don't have it for you tonight. I'm just kidding, of course. It's April Fool's somewhere. All right, let's bring them out. [APPLAUSE] [MUSIC PLAYING] All right, so what do you think? [CHEERING] Do you like the car? Seem good? [APPLAUSE] All right. And this is kind of crazy, but I just learned, I was just told that the total number of orders for the Model 3 in the past 24 hours has now passed 115,000. [CHEERING] Thank you. That's a lot. Yeah. [CHEERING] So thank you to everyone that ordered the car. We love you. And for those of you that are here, please enjoy your rides tonight in the Model 3. And for those online, you can order at tesla.com. Thank you. [CHEERING] [MUSIC PLAYING]