The Secret Tesla Master Plan (Just Between You and Me) Elon Musk, Co-Founder and CEO of Tesla Motors, August 2, 2006 As you know, Tesla's first product was a high-performance electric sports car called the Tesla Roadster. However, some readers may not be aware that our long-term plan is to produce different models of cars, including affordable family cars. This is because the primary purpose of Tesla (and the reason I invested in the company) is to help advance the transition from an economy based on the extraction and combustion of hydrocarbon fuels to a solar electric economy. I believe this is the main solution for sustainable development, though not the only one. To achieve this goal, it is crucial to produce electric vehicles without compromise. The purpose of the Tesla Roadster is to directly face and defeat gasoline-powered sports cars like those from Porsche or Ferrari. Moreover, on top of that, its energy efficiency is twice that of the Prius. Nevertheless, some people still ask what good this does for the world. Do we really need another high-performance sports car? Can it really have an impact on the global carbon emissions problem? Well, the answer is no, not much. But that's not the point, unless you understand the secret master plan mentioned at the beginning of this article. Almost all new technologies initially have a high unit cost and will gradually be improved over time, and this is also true for electric vehicles. Tesla's strategy is to enter the high-end market, where consumers are willing to pay a higher price. Then, with the launch of each subsequent model, we aim to move towards a larger market as quickly as possible with greater production volume and lower prices. I can say that our second model will be a four-door sports family car, priced at around half of the Tesla Roadster's price ($89,000), while sacrificing not too many other features. And the price of the third model will be even more affordable. As a rapidly growing technology company, all of our free cash flow is invested in research and development to reduce costs and bring subsequent products to market as soon as possible. When someone buys a Tesla Roadster sports car, they are actually helping to cover the development costs of the family car. [read more]
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The Secret Tesla Master Plan (Just Between You and Me) Elon Musk, Co-Founder and CEO of Tesla Motors, August 2, 2006 As you know, Tesla's first product was a high-performance electric sports car called the Tesla Roadster. However, some readers may not be aware that our long-term plan is to produce different models of cars, including affordable family cars. This is because the primary purpose of Tesla (and the reason I invested in the company) is to help advance the transition from an economy based on the extraction and combustion of hydrocarbon fuels to a solar electric economy. I believe this is the main solution for sustainable development, though not the only one. To achieve this goal, it is crucial to produce electric vehicles without compromise. The purpose of the Tesla Roadster is to directly face and defeat gasoline-powered sports cars like those from Porsche or Ferrari. Moreover, on top of that, its energy efficiency is twice that of the Prius. Nevertheless, some people still ask what good this does for the world. Do we really need another high-performance sports car? Can it really have an impact on the global carbon emissions problem? Well, the answer is no, not much. But that's not the point, unless you understand the secret master plan mentioned at the beginning of this article. Almost all new technologies initially have a high unit cost and will gradually be improved over time, and this is also true for electric vehicles. Tesla's strategy is to enter the high-end market, where consumers are willing to pay a higher price. Then, with the launch of each subsequent model, we aim to move towards a larger market as quickly as possible with greater production volume and lower prices. I can say that our second model will be a four-door sports family car, priced at around half of the Tesla Roadster's price ($89,000), while sacrificing not too many other features. And the price of the third model will be even more affordable. As a rapidly growing technology company, all of our free cash flow is invested in research and development to reduce costs and bring subsequent products to market as soon as possible. When someone buys a Tesla Roadster sports car, they are actually helping to cover the development costs of the family car. [read more]
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