It’s hard to keep up with Tesla’s CEO and co-founder. The relentless Elon Musk never ceases to come up with ideas that surpass all predictions and his thought process seems to be constantly in overdrive. This time, he has expressed concerns that buyers expect too much of Model 3 and he plans to – wait for it – lower expectations.
Well, to be fair, Musk worries that consumers think that Model 3 is a Model S upgrade, which it certainly is not. Model S is a luxurious vehicle which you can purchase for a minimum price of $70,000. While Model 3 is expected to be built with the latest technology in mind – it is an economic, affordable model, with a starting price of $35,000 before incentives.
Model 3 is expected to have a shorter range as well as less room, power and acceleration, but the CEO still feels it’s possible that the ‘3’ will mislead some uninformed buyers. Musk says they already see such confusion featured in Model S orders.
Under Musk’s lead, Tesla has set an annual production target of one million cars by 2020 – quite an increase from the 84,000 or so vehicle produced by Tesla in 2016.
To prevent any misunderstandings – and the disappointment that is likely to follow – Tesla has begun to actively lower buyers’ expectations with an ‘anti-sell’ strategy that includes no advertising and no test drives. Musk said though that so far that strategy has not seem to lower buyers’ enthusiasm and that net reservations continues to rise every week.
At iFOREX you can trade Tesla share CFDs, as well as share CFDs of many other automakers such as Honda, Toyota, BMW, Volkswagen, Ferrari and GM. Follow the news, take advantage of our advanced trading tools and trade with knowledge.