Despite his hectic schedule while facing the current corporate debacle Tesla, Inc. is in right now, company founder Elon Musk sat down for an interview with a YouTube personality to talk about the electric vehicle industry. During the segment, Musk inadvertently spilled some juicy hints about the plan to produce a USD$25,000-dollar EV unit which might come around three years from now.
According to recent reports, the South African tech mogul got on an interview last week to talk about the future of consumer technology and Tesla's role in its development.
Held inside Tesla's Fremont Gigafactory, the conversation between Musk and YouTuber Marques Brownlee started off on the topic on the EV market which, as revealed, is quite very competitive. Tesla, on its part, has to rely hard on "word of mouth," aside from advertising, for them to sell their cars.
Referring to the "economies of scale," Musk explained that Tesla can only produce and sell this much volume compared to big companies venturing on EV cars. Because big companies, BMW for example, has the capacity to manufacture and dispose of a lot more cars than they do, it would be difficult for Tesla to take a significant share on the EV market for itself.
The conversation then segued to the topic on the possibility that Tesla may be able to produce "an even less expensive, quality" Tesla car.
In his response, Musk affirmed that this is an absolute scenario. As explained, if Tesla would be able to build up its "economies of scale" just like the major manufacturers do, then it would be more likely for the company to release EV cars with pricing that suits well on the average consumer's pocket.
Musk revealed, during the interview, that Tesla may "ultimately get to a $25,000 car" which could arrive in "three years." But for them to achieve that, the company has to work "very hard."
Currently, Tesla's entry-level car, the Tesla Model 3, starts in retail at USD$35,000 and the Model S following behind with a USD$75,000 price tag.
As cited over at The Verge, Musk's plan to scale up production while lowering the brand's design and technology costs should be able to drive down the pricing of their cars while at the same time answer to a greater demand.
Musk went on to tell Brownlee that Tesla is now looking for a solution which will enable them to manufacture "two new vehicles at the same time."
