Why Tesla's Model 3 should frighten Audi, Mercedes and BMW

Tesla CEO Elon Musk last night unveiled the long-anticipated Model 3, a four-door mid-size sedan that takes aim at the mass market in ways unlike the all-electric vehicles (EVs) Tesla has released to date.

The Model 3, which won't ship until mid-to-late 2017, has a starting price of around $35,000. That contrasts starkly with other Tesla sedans, which have a starting price of about $70,000. And, Musk said, it will be one of the safest cars in the world. That's because the Model 3 will include Tesla's Autopilot feature.

That $35,000 price tag, before government EV tax incentives, means the Model 3 beats rivals such as the BMW 3 Series, according to Chris Robinson, an analyst with Lux Research.

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