“Tesla was not founded to make expensive cars,” said the company’s CTO, JB Straubel.
That seems like a pretty flimsy claim given the $100,000 price tag on currently available Tesla Model S and Model X cars.
But the company insists its goal has always been to build affordable vehicles. The next project, which the company’s major focus will be on in coming months, is the Model 3.
The EV is expected to have a price tag around $35,000, only slightly higher than the national average for car prices. What’s more, Tesla wants to ramp up production with its upcoming Gigafactory.
Rather than the tens of thousands of cars it makes per year now, Tesla is aiming for the hundreds of thousands range.
Compared to other car companies, that’s not much. The world’s leading car company, Toyota, made over 9 million vehicles alone last year.
But you have to understand that those numbers came from gasoline vehicles, which Toyota has had the manufacturing power to build for years.
Tesla is producing for a whole different market, one which no other company has the manufacturing infrastructure for just yet: all-electric vehicles.
Toyota may have its hydrogen Mirai, but even the world’s largest car company doesn’t have the ability to suddenly start producing hundreds of thousands of EV’s per year. Unfortunately for Toyota, that’s exactly what Tesla is planning to do.
The Gigafactory is set to start production by the beginning of next year. And Tesla has plans to ease into production as parts of the factory are brought online.
You see, rather than completing the entire factory before production begins, the company wants to finish the factory in phases, and begin production in finished sections while unfinished sections are still being put together.
In the same way that it’s adding features and value to its cars, Tesla will be building up its business step-by-step, slowly but surely securing its place as the driver of the EV movement.
Consumers, get ready for a new era in vehicle make-up. And investors, feel free to check out my latest report on how you can bag some major gains while this market is still young.
To continue reading on Tesla’s focus on affordable cars… Click here to read the Forbes article.
P.S. Now that Elon Musk is fully in the driver’s seat of the lithium revolution taking place, the biggest catalyst for Tesla over the next few decades will be where it will find its lithium supply — thing is, Musk’s secret lithium investments were already revealed right here.