Tesla Motors Inc (TSLA) CEO says cheaper model is ‘about three years away’

Posted Jan 16, 2014

Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk said that an economical version of a Tesla vehicle is around three years away. This is based on an interview that CNN’s Poppy Harlow did with Musk. Tesla Motors currently sells the Model S, which has a starting price of $70,000. Musk said that when the cheaper Tesla vehicle enters the market, it will cost around $35,000. Drivers will also save by not having to buy gas.

“Our mass-market, affordable car is about three years away,” said Musk in the interview. “That’s the car we’ve always wanted to make.”

Earlier this week Tesla Motors Inc (NASDAQ:TSLA) announced that they have sold 6,900 Model S sedans in the fourth quarter, which is 25% higher than the previous quarter. That number was about 20% higher than their most recent guidance. Tesla Motors Inc (NASDAQ:TSLA) shares increased yesterday and today due to the good news about the company.

Tesla Motors Inc (NASDAQ:TSLA) is planning to start production of the Model X SUV this year. The Model X will cost between $70,000 and $90,000. The Model X will go for sale in late 2014 and high-volume deliveries will start in about a year.

Eventually Tesla Motors Inc (NASDAQ:TSLA) has plans to create a pickup truck that competes against the Ford F-150, but that is something that would not happen for at least 4-5 years.

[Source: CNN]