Peter_M
Member
I see two kinds of thinking by Tesla on this. First is the one they mention in the P100D release: expensive cars funding the development of cheaper cars. But now that other manufacturers are finally stepping up and building (or at least planning to build) decent EVs, Tesla will be facing serious competition for the first time, and they want to keep their place in this many-vendor world as the high-end premium EV company. As they have always said, the market is plenty big for many players, but Tesla may prefer to be a company that focuses on innovation, premium new technology and performance rather than high volume. I'm not sure what that says about the Model 3, but I would guess that it will be the "premium mid-price" EV and Tesla may leave the job of building really basic, inexpensive EVs to others.