Musk Looks Beyond Model 3 To More-Affordable Fourth Generation Car

The Tesla Model 3 is arguably the biggest electric car news ever, but company head Elon Musk has already hinted that a cheaper EV to follow is in its future plans.

Musk’s hint comes after the 12-minute mark in his discussion with Norway’s minister of transport and communications at the Future Transport Solutions conference, and this is all he had to say:

I’m super excited about being able to produce a car that most people can afford. And there will be future cars that are even more affordable down the road. But with something like the Model 3, it’s designed such that roughly half of people will be able to afford the car. Then, with fourth generation and smaller cars and whatnot, we’ll ultimately be in the position where everyone will be able to afford the car.

Tesla’s business plan has always spoken of a three-tier strategy from the Roadster to the S (and the platform-sharing X added along the way), to the what is now called the Model 3 – and expected platform-sharing Model Y – with these latter as the most-affordable cars.

But while the Model 3 has had an amazing response with around 400,000 deposits, its sticker is to be at least a little bit to a fair amount above today’s lower 30s average new car price – from $35,000 to potentially average $42,000 with options and above.

As such, Musk says Tesla is planning ahead, though certainly its first priority is meeting the massive expectations and build-up for the Model 3 projected for late 2017, and battery supplying Gigafactory along with other things already on its plate.

Source: Tesla.

Source: Tesla.

But with all that, Tesla wants to make the electric car even more accessible, said Musk. This may be the first time that he has explicitly said Tesla is looking beyond the Model 3 to a car even closer to mainstream pricing and presumably with cost parity with ordinary gas cars.

Motley Fool