Tesla is desperately trying to avoid 'misperceptions' about its long-awaited Model 3

Tesla is actively trying to eliminate any “misperceptions” about the Model 3 as it inches closer to deliveries.

The electric carmaker wrote in its investor letter Wednesday that the Model 3 should not be seen as the next-generation Model S. Tesla CEO Elon Musk made similar comments on Twitter in March — but the company going out of its way to ease expectations in an SEC filing is noteworthy.

The letter shows Tesla sees a need to temper expectations before deliveries begin at the end of this year.

“Moving past Q2, particularly as Model 3 becomes available, one of our challenges will be to eliminate any misperception about the differences between Model S and Model 3,” Tesla wrote in the letter. “We have seen a belief among some that Model 3 is the newest and more advanced generation of Model S. This is not correct.”

The Model 3 is Tesla’s first mass-market vehicle priced at $US35,000, which does not include the price of its Enhanced Autopilot or self-driving software packages. For that price, customers accustomed to Tesla’s luxury Model S and Model X will need to prepare for fewer bells and whistles.

Tesla said it’s on track to begin Model 3 production in July.

The company has seen an obscene amount of demand for its Model 3. Customers have yet to see the final production version of the vehicle, but Tesla has already pre-sold a years-worth of cars.

Tesla sees a need to remind those who put down an order in good faith that the Model 3 can’t compete with its more expensive Model S.

Get the latest Tesla stock price here.

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