Tesla Elon Musk CEO Plans to Make Cheap Electric Cars in 2021

Tesla CEO Elon Musk said Tesla might be able to create cheap electric cars in the next three years. The statement was said to coincide with Musk’s recognition that it was very difficult to do considering the economy and competition in the automotive industry.

The discourse was revealed amid the turmoil of Tesla’s privatization plan. Musk admitted that the company he founded was difficult to compete with big players like General Motors (GM) or Ford. The reason is, he said the company’s position as a small-scale automotive producer compared to GM and Ford in a highly competitive industry.

Musk said Tesla might be able to create quality electric cars that could be sold for the US $ 25,000. In comparison, currently the cheapest Tesla car prices, the Tesla Model 3 is the US $ 35,000.

“Tesla is really focused on making cars more affordable that is very difficult to achieve. To make cars more affordable, you need high volume and economies of scale. I think that with hard work we can sell cars worth the US $ 25,000 in the next three years,” Musk said.

He then compared the manufacture of cars to the early years of the existence of cell phones, where the cell phone was very large but did not have many features or functions. Musk believes that the technology in the future will make all designs more minimalistic but can provide broad features or functions.

With each iteration of sequential designs, you can add more things, you can find better ways to produce them, so they get better and cheaper. With “the natural development of new technology, it takes several versions and large volumes to make it more affordable,” he said.

He was proud of Tesla for barely spending a dime on advertising or endorsement. According to him, Tesla relied on word of mouth promotion.

“The key to selling products is having something that people like and talk about. I put all the money and attention to making products that are as attractive as possible,” Musk said.

According to him, the marketing strategy is a Tesla business model. If people like a product, they will give testimonials and that will impact the company’s business without the need for additional costs.

Quoting CNBC, in addition to relying on word of mouth promotion, he said it did not provide discounts for marketed products. Even as the number one person in the company he founded, he claimed to still have to pay in full for a Tesla car.

Previously, Tesla shares had dropped by around eight per cent because investors doubted Musk’s ability to lead Tesla. The reason was recently in an exclusive interview with the New York Times, Musk cried because he felt too tired working up to 120 hours per week and had to take sleeping pills or sedatives to sleep.

Of course, this has caused turmoil in this electric car manufacturing company. Tesla’s board members were very worried about Musk’s condition.

Image source : https://www.tesla.com/modelx