Tesla CEO Musk: World Needs Great Affordable Electric Car, Under $40,000

By Matthew Askari | May 29, 2013
Tesla has been riding an ever-building wave of momentum, one that has made the California-based electric automaker a household name of late. From winning the 2013 Motor Trend Car of the Year, to recently becoming profitable, Tesla has been surprising its doubters. Following this trend, Tesla CEO Elon Musk says "what the world needs is a great, affordable electric car."
Tesla's own acclaimed Model S is has been winning accolades and praise the industry over, but with a starting price tag of $70,000, and many models reaching $100k, the Model S electric sedan is not a realistic option for most people. In a Bloomberg interview, Musk acknowledges this, saying "with the Model S, you have a compelling car that's too expensive for most people." He says the Nissan Leaf "is cheap, but it's not great."
The plan? Build an electric car that has appeal, and is priced under $40,000. Musk says such a car should be able to go about 200 miles on a single charge, and reach consumers in three to four years. It's possible Tesla would use its existing battery pack, and develop a smaller, lighter frame sedan similar to the Model S. With battery technology rapidly developing, and with an economy of scale, Tesla could manage such a vehicle. And at this point, we wouldn't bet against Musk. Source: Bloomberg