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Musk: Tesla Could Produce a $25K Car in 3 Years By Shoshanna Delventhal | August 20, 2018 — 2:14 PM EDT
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As Tesla Inc. (TSLA
TSLA
Tesla Inc
308.44
+0.96%
) attempts to push into the mass market with its Model 3 sedan, long-promised at a price of $35,000, Chief Executive Officer and founder Elon Musk says his electric vehicle (EV) company could make a $25,000 car in "about three years."
In an interview with popular YouTuber and Tesla fan Marques Brownlee, the high-profile tech mogul and angel investor spoke to the low-cost version of the EV, while highlighting to auto industry's "insanely competitive" nature. (See also: Tesla Model 3 Tech Is 'Years Ahead of Peers’: UBS.)
Silicon Valley Automaker Wants to Scale, Cut Costs
Tesla shares again plummeted on reports that Musk's tweets regarding taking Tesla private were not signed off by anyone. Bears including analysts at J.P. Morgan are now cautioning against the stock on doubts that funding was secured for a take-private transaction, or that there was any formal proposal for such a deal. In the 17-minute YouTube interview, recent news including a highly emotional and personal New York Times interview and a Securities and Exchange Commission (SEC) investigation were not discussed. Instead Musk focused on Model 3 production, technology and science.
While Tesla has yet to sell its baseline $35,000 Model 3, relying on costlier models to sustain operations, Musk expressed the goal of ramping up production and lowering design and technology costs to reach a cost of $25,000. "If we work really hard, I think maybe we could do that in three years," said Musk. He compared auto manufacturing to the early years of the cellphone, which were bulky and lacked functionality, noted CNBC.
Musk also indicated that he'd like to improve production to a point where Tesla could make two cars at the same time. Tesla's queue currently includes the crossover Model Y, a Tesla pickup truck, the Semi tractor trailer and the next-gen Roadster.
The Palo Alto, California-based automaker relies heavily on its die-hard fan base and Musk fans, who tout the company's ability to continue to beat the odds despite being the most-shorted stock in the U.S. In the YouTube interview, Musk noted that Tesla spends virtually nothing on advertising and endorsements and instead relies heavily on word of mouth.
"Where I put all the money into and all the attention into is trying to make the product as compelling as possible," said the CEO. (See also: Tesla: Musk Makes ‘Valuable Apology’ on Conf. Call.)
Read more: Musk: Tesla Could Produce a $25K Car in 3 Years | Investopedia https://www.investopedia.com/news/musk-tesla-could-produce-25k-car-3-years/#ixzz5On0quSpn
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