This is a perennial point of contention as Tesla continues to expand across the United States.
The question is whether or whether the Austin, Texas, carmaker can produce a model at an affordable enough price to entice a sizable number of buyers to switch to electric vehicles. To put it another way, when is Tesla going to start producing a cheap vehicle so that it can reach the 80% of American consumers that it now does not?
Many industry watchers expected Elon Musk, the company’s eccentric and flamboyant CEO, to introduce the Model 2, a $25,000 Tesla automobile, during the company’s Investor Day on March 1.
The automaker did not unveil any new cars for the general public on that day. In November of this year (late 2019), Tesla finally revealed the Cybertruck, the company’s first pickup truck.
Nothing has happened since then, and the wait has been excruciating. Musk’s team could have been able to expand their market in the developed world and gain ground in developing nations with the help of the Model 2. A blow would have been delivered by Musk and Tesla to its competitors.
Since then, Tesla’s rivals have introduced cheaper electric vehicles, putting pressure on Musk and company. Priced at less than 25,000 euros ($26,400), a new electric car from Volkswagen (VWAGY – Get Free Report) was introduced on March 15. This prototype vehicle was dubbed the ID. 2all by the German powerhouse. Production of the consumer version will begin around 2025.
BYD (BYDDY), Tesla’s Chinese competitor, introduced the Seagull, the world’s least expensive electric vehicle (EV) at $11,000, a month after Volkswagen’s huge announcement.
However, Tesla (TSLA) – Get Free Report has figured out how to lower the price of its vehicles. The Model 3, Tesla’s entry-level vehicle, now costs $40,240 after many price cuts this year. A Twitter user on June 8 pointed out that if consumers take into account the $7,500 federal tax credit that has been available in the United States since January, the price drops significantly. The user elaborated that in areas with very generous rebates, it was possible to buy this vehicle for as little as $20,000.
‘Extremely Rare’
“The general public still think that Teslas are very expensive,” the Twitter user wrote. They are now selling Teslas for around $30,000, and in some places, buyers can even acquire them for about $20,000. Amazingly, now is the perfect moment to purchase a Tesla.
The general public still think that Tesla’s are very expensive. With tax incentives they are getting below 30,000 and then some states you can get a Tesla for 20,000 with tax incentives. This is truly mind blowing, and the best time to get a Tesla. https://t.co/g61OOtafml
— Tesla Owners Silicon Valley (@teslaownersSV) June 8, 2023
When this was said, Musk stepped in to reframe the conversation, focusing in particular on the $20,000 price tag for a Tesla. When it comes to the billionaire, we have a long way to go. However, he thinks that Tesla’s price actions and other incentives for clean vehicles make the company’s automobiles accessible to a wide range of customers.
The Techno King, as he is known at Tesla, stated, “Qualifying for the $20k car is extremely rare,” making it apparent that the likelihood of a buyer being able to purchase a Tesla vehicle for $20,000 was slim. However, “the majority of electric vehicle buyers (across all manufacturers) are eligible for the $7500 credit.”
The general public still think that Tesla’s are very expensive. With tax incentives they are getting below 30,000 and then some states you can get a Tesla for 20,000 with tax incentives. This is truly mind blowing, and the best time to get a Tesla. https://t.co/g61OOtafml
— Tesla Owners Silicon Valley (@teslaownersSV) June 8, 2023
Musk said last month that Tesla will begin advertising to inform consumers about the company’s pricing structure. The tech tycoon also stated that Tesla was further along in artificial intelligence than Google’s Waymo, thus it was important to inform customers about the company’s features, goods, and technical breakthroughs.
