CEO Elon Musk began talking about a cheap, affordable Tesla eons ago in the first Master Plan in 2006. But, wait, it's just around corner.
That’s true. But just don’t expect this to be applied to a $25K car anytime soon.
As Edmunds news editor Will Kaufman told me this week. Yes, Tesla is stepping up its relentless pursuit of cost cutting. But that doesn’t necessarily translate to cheaper cars. The goal is to make money, after all. To lower prices, Tesla now leans on federal tax credits and state rebates in the U.S. Problem is, government incentives aren’t permanent, aren’t consistent from state to state, and come and go like the seasons.. That popular hatchback starts at under $30K and is eligible for the same tax credits and rebates that the Model 3 is.
Aren’t convinced and still believe in a $25K Tesla after all these years? Fine. Meanwhile in the real world car buyers across the world will take out a car loan and flock to the $40K Model 3 or the coming Model Y refresh.
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