Diarmuid O’Connell, Tesla’s Vice President of Business Development mentioned that Tesla’s competitors were trying to categorize the brand as the brand that only manufacture cars for the elitist as the price is considered to be very expensive. He further added that the competitors also did the same thing in 2008 during the time when Tesla released more expensive cars than the price of the car that the company is trying to make now.
He also mentioned that it is not the vision for Tesla to produce a mass-market of $35,000 car by 2017; however, it is the plan. The Tesla executive defends the company from its competitors remark at the CAR Management Briefing Seminars on Tuesday.
On a separate occasion, Elon Musk, Tesla’s CEO also wrote on one of the entries of his blog in November 2013, saying that Tesla’s goal since the beginning was to make a mass market of electric cars as soon as possible. However, it was not achievable then as Tesla was a startup company which had only one technology iteration and did not have experience in building a car as well as there was no economy of scale. Therefore, the initial product was going to be expensive regardless.
Tesla’s upcoming Model 3 is expected to be priced at $35,000 before incentives which is about half the starting price of Model S. Tesla expected to produce about 500,000 vehicles yearly by 2020.