Getting Affordable: Tesla Motors to Debut a Cheaper Car

Tesla-motors

Tesla Motors plans to unveil an electric car in early 2015 that could sell in the $40,000 range, a mainstream offering that could be key to the automaker’s future growth.

Tesla’s only current offering is the Model S, a premium sport sedan that starts at $71,070 before any state or federal tax incentives, and can cost far more with options. In late 2014, the Palo Alto Calif., automaker plans to release a long-awaited Model X sport-utility, likely to sell in the same price range.

The third, lower-priced model could make its official debut at the 2015 North American International Auto Show in Detroit, Tesla confirmed Friday. It would begin selling in 2016 or 2017.

The automaker has long promised a more affordable electric car. Delivering one will be crucial to its future.

“This is hugely important for Tesla,” said Thilo Koslowski, an auto industry analyst at Gartner. “This is ultimately the car that will make Tesla a household brand rather than just something in the premium segments. No car company can live off 20,000 to 30,000 sales a year and be profitable in the long term.”

Tesla is on pace to build about 21,000 copies of its only current vehicle, the Model S sedan. The automaker hopes to double that figure in 2014 with the introduction of the Model X.

The Model X and S are considered by the company as the second step in its evolution of electric cars. The first was the Tesla Roadster, the two-seat sports car of which Tesla sold about 2,300 copies worldwide, and which is no longer in production.

The newest model debuting in 2015 will be the third step, as its platform will differ significantly from anything else Tesla has built so far.

source: latimes.com

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