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Why is it called Model 3?

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The Model 3 with be Tesla's 4th car. What am I missing?

The progression has to do with price vs. production volume. From that standpoint the Model S and the Model X are in the same category.

Step 1: Roadster — low volume / high price
Step 2: Model S & Model X — medium volume / moderate price
Step 3: Model III — high volume / low price
 
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Tesla is a tech company. They used 0-based indexing.

0. Roadster
1. Model S
2. Model X

Also, Model S was the first EV that Tesla designed from the ground up instead of retrofitting an ICE. The roadster body is a Lotus, Tesla added the battery. Model S the body, drive train and battery were designed and integrated specifically for optimized EV design.
 
Also, Model S was the first EV that Tesla designed from the ground up instead of retrofitting an ICE. The roadster body is a Lotus, Tesla added the battery. Model S the body, drive train and battery were designed and integrated specifically for optimized EV design.

I think the confusing and still unanswered question is why Tesla went from a literal name like "Roadster" to a letter-based naming convention like "Model S/X" to now a numeric name like "Model 3"? Give them all consistent names so consumers understand the difference between the model names. They actually had some momentum with the "Model S" and "Model X" thing... the name "Model 3" or "Model III" makes no sense other than it's their third platform.
 
I think the confusing and still unanswered question is why Tesla went from a literal name like "Roadster" to a letter-based naming convention like "Model S/X" to now a numeric name like "Model 3"? Give them all consistent names so consumers understand the difference between the model names. They actually had some momentum with the "Model S" and "Model X" thing... the name "Model 3" or "Model III" makes no sense other than it's their third platform.

Musk did not name the Roadster. His vision for the vehicles started with Model S.
 
Musk did not name the Roadster. His vision for the vehicles started with Model S.

While Elon defenitely lead Tesla to it's success, the grand masterplan Sports Car (for few rich) - Limousine (for more) - Affordabel EV (for many) has ben around since the beginning, long long before the Roadster was halfway finished. How much of this is from Elon himself I don't know, but back then Martin Eberhardt was the face and visionary to the outside world. At first Elons takeover was seen as the ned of tesla as the Moneybag-Paypall-Guy kicked out the 'visionary' Eberhardt. Thank god that most of us were wrong and Elon saved Tesla became the icon he is now.

So yes, the Model S was the car wich Elon had full controll over, but he did stick with the original plan wich therefor I wouldn't credit to him alone.

as for why Modle 3... it also just turns the original idea from having SEX to the leetspeak version of it S3X wich works quiet fine with a modern Company and is just as clever. But yeah I like the roman number design best especial with the 4 in it.
 
I think Tesla has specific strategic approach with names, the purpose of which is to prove that they can produce better EV than every bestselling ICE vehicle in each different segment.
Model S – direct competition with Mercedes S Class
Model X – targeting most popular SUVs: BMW X6 and X5
Model 3 – BMW 3 series
When they make a pickup truck and if they name it Model F it will be prove of my point :)
 
The progression has to do with price vs. production volume. From that standpoint the Model S and the Model X are in the same category.

And the S and X use the same platform, the X is really just a minor variation of the S.

I think the Model 3 will be built on a very different, lower cost platform. It has to be to get the cost down. I doubt it will use nearly as much aluminum as the S/X.