Photo Gallery of today's race
View all America's Cup photos
Listen to America's Cup audio
Full America's Cup coverageKEY POINTS:
Team New Zealand have warned Alinghi not to underestimate them after the Kiwis' spectacular win in Race 3 of the America's Cup this morning.
In an extraordinary race, Team NZ recovered from a costly crew error to win in Valencia by 25 seconds and now lead the best
of nine series 2-1.
It was an amazing tit-for-tat race which former Alinghi skipper Russell Coutts claimed was one of the best races he had ever seen.
After the race, Team NZ tactician Terry Hutchinson said: "You can't underestimate the heart of the team and how well the guys sailed under incredible pressure.
"It was that type of day. It wasn't necessarily about getting the first one right or the second or the third one. It was getting the last one right, and today we did."
Navigator Kevin Hall added: "It probably hasn't happened very often that you see three passes in an America's Cup race. It's a testament to the strength of both teams."
In race which had everything in it Team New Zealand stormed out to a huge lead on the first beat after benefiting from an enormous right hand shift.
In a split tack start Dean Barker won the favoured right side but it came at a cost as the Swiss powered over the line with much more pace.
Team NZ crewman Adam Beashel said there was probably some psychological gain for the New Zealand camp in the way they managed to snatch victory over Alinghi after having seen a huge lead evaporate.
"But they can turn the tables pretty easily," he said.
Crewmate Matthew Mason said being able to "hang tough" after Alinghi had come from behind to lead with one leg to go was a boost.
"To get passed up at the top mark is pretty tough," he said.
"We just did a good job of hanging in there and we did a nice set. We just kept battling away and, as it turned out, we got a little shift and a little bit of pressure and it came good for us."
Trailing their opponents by a couple of boat lengths, New Zealand's faith in the right paid off as a huge right hand shift came through which saw them power past the Swiss and out to a 300 metre plus lead.
Team New Zealand rounded the top mark 1 minute 23s ahead. They maintained their lead down the first run but then disaster struck at the bottom gate.
Not only did the New Zealanders get their spinnaker caught in the genoa car they also nearly lost mid bowman Richard Meacham over board.
The mistake allowed the Swiss to storm back into the game.
The two were neck and neck on the approach to the third mark but the Swiss were positioned in better pressure and in a remarkable comeback led the New Zealanders around the top mark.
Alinghi's lead was never threatened in the early part of the run but two thirds of the way down the Kiwis came back and it was neck and neck. Alinghi sailed a dangerous game in opting for big separation.
Alinghi had to gybe near the finish which allowed Team New Zealand to sail into the lead. They held their composure to the finish to win by 25 seconds.
The late Sir Tom Clark would have been proud.
Sir Tom's ashes were scattered along the start line in Valencia earlier this week.
Sir Tom, who passed away two years ago, was known as a patron of New Zealand's international yachting ventures.
He was also an adviser and trustee of Team New Zealand and involved during the triumphant America's Cup campaign in San Diego. He was also one of Team New Zealand managing director Grant Dalton's mentors.
Before he died Clark was asked whether he believed in Dalton to which he replied "absolutely".
Among those present in the scattering were Lady Pippa Blake and Team New Zealand's business manager Ross Blackman.
Race four is tonight then another lay day is scheduled before race five, six and seven on Friday, Saturday and Sunday.
Since 1871 the team that has won the third race has always gone on to win the America's Cup.
The third race between America's Cup defender Alinghi and challenger Team New Zealand was delayed several times because of light and shifting winds.
Full coverage of the America's Cup from nzherald.co.nz/americascup and desktoptv.co.nz