It's still in the early stages - Musk and the company haven't even decided if they'll build it themselves or in partnership with a larger carmaker - but some of the rough details indicate it could be Tesla's first real volume seller. The Roadster is only expected to turn out about 1,800 examples per year, while the Whitestar sedan will run nearer to 20,000 in total output after it starts sales in late 2010, but those are still tiny numbers in terms of the overall market.
By aiming for a sub-$30,000 price point, Tesla is clearly intending to build a car for the masses, which means production figures to match. Musk's interview with Newsweek indicates the third model could be targeting annual production figures of about 200,000 units, based on his theory of volume versus cost.
"[W]hen you increase the production quantity by a factor of 10, you can reduce the price by a factor of two. In the early 20th century, cars were initially something for wealthy people. It took quite some time for the cost to be optimized and become accessible to a broader population. It's the same thing here—we'll see the traditional technology learning curve," said Musk.



Reader Comments
Fri Jul 25 2008 8:45 PM
SuperSkyline89 says
Wow, if this turns out as good as the Roadster I would strongly consider buying one.
Sat Jul 26 2008 11:02 AM
roger says
How can you say they are World Famous when they havent even delivered a car yet?
Apart from a few petrol heads, I doubt if anyone else would have heard of them!
Sat Jul 26 2008 1:11 PM
SuperSkyline89 says
Anything that is world famous is known mostly only to avid enthusiasts. Show me pictures of some of the most famous actors in the world and I wouldn't be able to name any of them, but that doesn't mean they aren't world famous.
99% of people don't know shit about cars anyways, so what they do or don't know about Tesla frankly doesn't mean anything either.
Sat Jul 26 2008 1:59 PM
justin says
i agree with superskyline89 it's kind of like the Bugatti Veyron and the SSC Ultimate Aero TT. Ask anybody and they'll know that it's the fastest (or was) car in the world. But ask the same people 99% of them would have no idea there was such a car let alone the current fastest car in the world.
Tue Jul 29 2008 3:41 AM
mr_svperstar says
“When you increase the production quantity by a factor of 10, you can reduce the price by a factor of two"
By that logic they should just halve the price of the $60,000 car, they would sell 10 times as many and everyone would be happy. No need to design a new smaller, cheaper and inferior car...
They are clearly verbalising directly out their rectum.
Mon Sep 8 2008 9:06 PM
MARIO says
You TESLA guys have a good thing going. If you can build a car for $30K you will have the world eating out of your hand! But, let's get production up and running full speed ahead. You will have my fullest attention when you add in SOLAR.
C'mon, get moving on your production... !
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