The Tesla Model 3 was supposed to be the electric car for the average consumer. Initially priced at $35,000, CEO Elon Musk’s gambit was a simple one—if you wanted to buy an electric vehicle, why wouldn’t you get a car that looked great, had decent mileage, and made you one of “those fancy Tesla people”? Well, now there’s a big reason why you wouldn’t: the only Model 3 that you will get any time soon can cost over twice as much.
It’s been over a year since the Model 3 launched, and there is currently no car available for the $35,000 price tag. You can purchase a higher performance model, but that will cost you anywhere between $49,000 to $78,000. Musk took to Twitter to explain why. Apparently, getting the models off the line—and out of “production hell”—isn’t the only problem. If Tesla currently sold cars at the much advertised base price, the company would “die.”
With production, 1st you need achieve target rate & then smooth out flow to achieve target cost. Shipping min cost Model 3 right away wd cause Tesla to lose money & die. Need 3 to 6 months after 5k/wk to ship $35k Tesla & live.
— Elon Musk (@elonmusk) May 21, 2018
This bump in price was just another in a long line of setbacks for the company. In the same week, Consumer Reports failed to recommend the Model 3 to their readers due to long stopping distances when braking at high speeds, among other “big flaws.” On this week’s Muskwatch, Dan and I break it all down.
Also on the show this week, we finally get an update on SpaceX’s crewed Dragon capsule, Elon fails to catch a fairing, and the billionaire thanks all the Tesla supporters for standing by him. Although, that last bit seems to change day-to-day.
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What do you think of this week’s biggest Musk stories? What would you like to see us explore on the next Muskwatch? Let us know in the comments below!
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